EUR/USD: Holding 1.03 should renew bullish momentum – Scotiabank

EUR/USD edges lower from 1.0350 test after mixed Eurozone PMIs. The pair needs to defend 1.03 in order to retain bullish momentum, economists at Scotiabank report.

Weakness below 1.03 will point to renewed losses

“The data were mixed but the aggregate Eurozone data were better than forecast and unchanged or slightly stronger than the Oct report. All data prints were below 50, suggesting economic contraction, but the data will not prevent further ECB tightening in Dec. Modest EUR dips are liable to remain supported, we expect.”

“The short-term uptrend remains intact but soft price action may see spot test support around the 1.0300 zone intraday; holding the figure zone should renew bullish momentum for a retest (and break) of 1.0350.”

“Weakness below 1.03 will point to renewed losses towards the low 1.02s at least.”