Euro: Range trading likely to persist against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD is holding within a short-term channel as markets await comments from ECB President Lagarde at the Sintra symposium, which historically has had limited impact on near-term price action. The pair is described as neutral to bullish, with resistance around 1.14–1.1450 and a need for a break above 1.15 to meaningfully improve Euro recovery prospects.

Euro stuck in mid-channel range

"ECB President Lagarde opens the ECB’s Sintra symposium at 13.30ET. Several top central bankers are participating in the forum this week (including Fed Chairman Warsh and BoC Governor Macklem on Wednesday) and the high-profile nature of the speaker list has the market’s attention."

"The forum’s title is “Shaping Europe’s Future; Innovation, Growth and Stability”. Typically, Sintra’s content has not had a major impact on short-term price action and that may remain the case this year. "

"Neutral/bullish—Tentative gains from last week’s test of the low 1.13s has run into some resistance around the 1.14 level. "

"Spot is sitting right in the middle of its short-term channel which stretches from 1.1360 to 1.1450 currently, which is hardly enticing for position takers."

"Gains through 1.15 are needed to boost the EUR’s recovery potential at this stage."

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