The EUR/USD pair is holding steady as markets consolidate recent gains, according to Scotiabank’s Chief FX Strategist Shaun Osborne.
EUR Consolidates in Upper 1.11s
Osborne notes that the final Q2 German GDP data remains unchanged from the preliminary report, with weak consumption and investment exerting a drag on growth. Additionally, the ECB’s Knot and Nagel are scheduled to speak today.
Despite a minor drift from the 1.12 peak, Osborne suggests that this may just be a pause in the EUR’s strong uptrend, potentially forming a bull flag pattern. While RSI oscillators indicate the EUR is somewhat overbought, the trend higher in spot over the past four weeks provides protection against counter-trend corrections for now.
Key support levels for the EUR/USD pair are at 1.1150 and 1.1105/10, with stronger intraday support at the latter level.
Analysis and Breakdown:
In simpler terms, the EUR/USD pair is currently holding steady as markets take a breather after recent gains. Weak German GDP data and upcoming ECB speeches are influencing the pair’s movement.
Despite a slight pullback from recent highs, the EUR’s uptrend remains strong, with potential for further gains. Key support levels are identified to help traders navigate market fluctuations.
Overall, the analysis suggests that the EUR/USD pair is in a consolidation phase, with potential for further upside momentum. Traders should keep an eye on key support levels and upcoming events to make informed decisions in the forex market.