Euro: Bullish tone persists against US Dollar despite French risks - Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is underperforming as French protests weigh on local assets and widen spreads versus Germany. However, EUR/USD technicals are described as neutral to bullish, with dips below 1.12 well supported and a solid rebound from long-term retracement support in the low 1.11s. Intraday support is seen at 1.1175/80 and resistance at 1.1275.

Neutral to bullish above key supports

"The EUR is underperforming following widespread and violent protests across France against poor conditions in schools and hospitals and broader concerns about affordability."

"French stocks and bonds are underperforming and bond spreads versus Germany have widened to 145bps, sitting at the top of the (recent) historic range."

"Neutral/bullish – The EUR has slipped a little in overnight trade, but losses have been limited and dips below 1.12 are well-supported on the intraday chart."

"Intraday softness contrasts with the solid rebound from long-term retracement support in the low 1.11s (50% retracement of the EUR’s 2025/26 rally from the 1.01 area) and a bullish impulse on the weekly chart last week."

"Intraday support is 1.1175/80. Resistance is 1.1275."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)