As the USD weakens, EUR/USD has reached a marginal new high above 1.1050 according to Scotiabank’s Chief FX Strategist Shaun Osborne. The next major resistance for the Euro is the 200-week MA.
With no data reports from the Eurozone today, all eyes are on Thursday’s ECB minutes and the central bank’s update on negotiated wages for Q2. Some ECB officials are concerned about high wage growth posing a risk to the inflation outlook. Eurozone PMIs will also be released on Thursday, with real and nominal spreads currently supporting the Euro.
Although the spot is drifting back from the intraday high, bullish trend oscillators on the intraday, daily, and weekly DMI oscillators suggest limited scope for EUR corrections. This should provide firm support on dips to the mid/upper 1.09s, with the 200-week MA at 1.1064 serving as the next major topside challenge for the EUR.
Analysis:
The weakening USD and strong Euro could impact global markets and trading opportunities. Investors may consider diversifying their portfolios to take advantage of potential gains in the Euro. Keep an eye on upcoming ECB updates and Eurozone PMIs for further insights into the Euro’s performance.