EUR/USD should make progress toward a retest of the early 2023 peak at 1.1030 – Scotiabank

EUR/USD extends gains through the low 1.09 area. Economists at Scotiabank expect the pair to retest the early 2023 peak at 1.1030. 

Sustained bull trend

“The technical set up here – sequential higher highs and higher lows on the short-term charts and solid bull trend momentum on the intraday, daily and weekly oscillators – points to a sustained bull trend which should make progress towards a retest of the early 2023 peak at 1.1030 – and perhaps more.”

“While ECB comments on rate prospects have become a bit more nuanced (aside from Holzmann’s comments yesterday that a 50 bps hike was still on the cards), there has been enough concern expressed by policymakers about rising core inflation to keep a half-point move as a risk for the May policy decision (even if markets are pricing more along the lines of +25 bps).”