EUR/USD could attempt a rebound to 1.1780/1.1800 – Scotiabank
FX Strategist at Scotiabank Eric Theoret noted the pair could re-test the 1.1780/1.1800 area in the near term.
“Recent ECB media coverage has centered on the outlook for 2018 and the shift to conventional policy with policymakers anticipating modest adjustments to forward guidance. Longer-term (10Y) spreads appear to be stabilizing, offering modest support to EUR, and risk reversals are once again pricing a modest premium for protection against EUR strength”.
“Trend and momentum indicators are modestly bullish and recent congestion appears centered around the 100 day MA in the mid-1.17s. We note the importance of recent support around 1.1720 and highlight the potential for near-term gains toward 1.1780 and 1.1800”.