The Euro (USD) is trading flat near the middle of its intraday range, supported by stronger than expected German and French industrial data. Technical indicators are indicating bullish momentum, suggesting a potential advance towards the 1.18 level and beyond, according to a report by Scotiabank’s chief FX strategists, Sean Osborne and Eric Theort.
German factory orders briefly lift the euro
“EUR is trading roughly flat during the session and just below the midpoint of the intraday range so far. The EUR received a moderate supply earlier from Europe on the back of stronger-than-expected German factory orders data and French intellectual property data, but gains were halted at highs of 1.16. Eurozone GDP was also revised slightly higher to 0.3% QoQ in Q3.”
“EUR maintains a strong technical touch but gains fail to make any headway after recent highs at upper 1.16 levels. The strength of bullish momentum on short-term oscillators suggests that a rally, and perhaps an advance towards the 1.18+ area, is still possible.”
