Gains through the low 1.16s will be psychologically very supportive for the EUR - Scotiabank

Analysts at Scotiabank noted that the gains in the euro are becoming more technically significant.

Key Quotes:

"Short-term price patterns suggest the market has consolidated overnight but is poised to extend higher again above 1.1600 (minor bull flag trigger)."

"Note the 40-day MA stands at 1.1609 today."

"There is good, short-term support at 1.1540."

"Broader patters suggest solid support on near-term dips while a high close on the week will deliver a positive longer-term price signal (3rd leg of a weekly “morning star”), suggesting last week’s test of 1.13 represented a major turning point for this market."

"We think gains through the low 1.16s will be psychologically very supportive for the EUR."