EUR/USD: momentum signals are bullish, DMI’s are confirming - Scotiabank

Noting the better-bid theme, analysts at Scotiabank explained that EUR/USD had been testing 1.2500 in late Asian/early European trade. 

Key Quotes:

Fundamental releases are offering support, with stronger than expected employment data from France and an upside surprise to Spanish CPI. 

Sentiment remains critical and risk reversals are showing signs of a turn. The three-month tenor is once again pricing a slight premium for protection against EUR strength.

EUR/USD short-term technicals: bullish EUR gains have extended through the mid-1.24s to test 1.2500 for the first time early February. 

Momentum signals are bullish and DMI’s are confirming. 

We await an extension through the Jan 25 high in the mid-1.25s and highlight the importance of the 61.8% retracement of the 2014-2017 decline at 1.2598."