EUR/USD retests the 1.0900 mark. Economists at Scotiabank analyze the pair’s outlook.

Trend strength signals are still leaning EUR-bearish

EUR/USD traded very weakly on Tuesday but failed to crack the 200-DMA support (1.0845) decisively. 

Today’s rebound in the EUR is testing pivotal short-term resistance at 1.0910. Gains through the 1.0900 area have been difficult to sustain since the middle of the month and trend strength signals are still leaning EUR-bearish. But the EUR’s rebound from Tuesday’s losses has been impressive and a push through 1.0925 resistance should see the rebound develop a little more momentum.