EUR/USD Eyes Mid-1.17s as Bullish Momentum Builds – Scotiabank

Scotiabank sees further upside for the euro against the U.S. dollar, with bullish momentum targeting the mid-1.17s region, according to the bank’s latest technical analysis.

Scotiabank’s technical outlook on EUR/USD

As of the latest analysis, Scotiabank’s strategists highlight that the euro has built constructive momentum, with the pair pushing higher within a broader recovery phase. The bank identifies the mid-1.17s as the next key resistance area, where sellers may emerge. The outlook is supported by improving technical indicators, including a firming trend and positive price action on the daily charts.

The analysis suggests that while the pair may face short-term consolidation, the overall bias remains tilted to the upside as long as support holds above the 1.16 level. A break above the mid-1.17s could open the door toward further gains, but traders should watch for potential profit-taking near that zone.

Market context and implications

The euro’s strength comes amid a mixed U.S. dollar environment, with markets weighing Federal Reserve policy expectations against economic data. The dollar index has shown signs of softening, providing room for EUR/USD to advance. Additionally, European economic data has been relatively resilient, offering some support to the single currency.

For traders, the mid-1.17s area represents a critical juncture. A sustained break above could signal a shift in the broader trend, while a rejection may lead to a pullback. Scotiabank’s analysis is a technical view, not a fundamental forecast, and should be considered alongside broader market drivers.

What this means for forex traders

Understanding technical levels is essential for short-term trading decisions. The mid-1.17s zone is a widely watched level, and a clear breakout could attract momentum buyers. Conversely, a failure to break higher might encourage profit-taking and short-term bearish positioning. Traders should monitor upcoming U.S. and eurozone data releases, as these could influence the pair’s direction.

Conclusion

Scotiabank’s bullish stance on EUR/USD, targeting the mid-1.17s, reflects a constructive technical picture. However, the outlook remains data-dependent, and traders should exercise caution around key resistance levels. As always, combining technical analysis with fundamental insights is crucial for informed trading decisions.

FAQs

Q1: What is Scotiabank’s target for EUR/USD?
Scotiabank sees the euro targeting the mid-1.17s against the U.S. dollar, based on bullish technical momentum.

Q2: Why is the mid-1.17s level important?
This area has historically acted as a resistance zone, and a break above it could signal further upside, while a rejection might lead to a pullback.

Q3: How should traders approach this outlook?
Traders should monitor the pair’s reaction near the mid-1.17s, using confirmation from price action and key economic data before making trading decisions.