EUR/USD gains have extended to trade on a 1.09 handle for the first time since last April. New cycle highs are set to keep the focus on gains extending to the 1.10 zone, according to economists at Scotiabank.

Undertone remains bullish

“Intraday gains to new cycle highs plus solid-looking trend oscillators across the short, medium and long term DMIs all point to EUR gains extending. But spot’s drop back from the session peak is leaving a negative print on the intraday chart which may see more EUR losses early in the American session.”

“Look for minor dips (mid-1.08s) to remain well supported.” 

“We look for EUR gains to reach 1.1000/50 shortly.”