EUR/USD drifts from mid/upper 1.09s. Economists at Scotiabank analyze the pair’s technical outlook.

Near term risks are tilting towards some retrenchment in EUR gains in the short run.

A minor top/reversal signal on the intraday chart was struck late last week and the EUR’s drift from the mid-1.09 area suggests near term risks are tilting towards some retrenchment in EUR gains in the short run. 

The broader trend higher remains constructive, however, and I think scope for EUR losses is limited to the 1.0840/50 area (40-Day Moving Average 1.0855) currently.