Scotiabank strategists Shaun Osborne and Eric Theoret report that the EUR/USD pair is consolidating around the 1.17 level, following sentiment-driven gains attributed to a tentative easing in geopolitical concerns [1]. The Euro entered Friday's North American session with a fractional 0.1% gain against the US dollar, reflecting continued strength after Thursday's consolidation [1]. Analysts highlight that risk reversals are constructive, indicating a softening in demand for downside protection and a shift back toward fundamentals [1]. Yield spreads are described as supportive, contributing to near-term upside risk for the Euro [1]. Technical indicators are bullish, with the Relative Strength Index (RSI) firmly above 50, marking a strong recovery in momentum after a mid-March plunge to oversold levels near 20 [1]. Scotiabank expects the EUR/USD to trade within a near-term range of 1.1680 to 1.1780, with limited resistance ahead of the 1.18 mark, which previously acted as a congestion point in late February [1].
CONCLUSION
The EUR/USD is showing signs of bullish momentum, supported by easing geopolitical concerns, constructive risk reversals, and favorable yield spreads. Technicals suggest further upside potential within the 1.1680–1.1780 range, with limited resistance ahead. Market participants may anticipate continued strength in the Euro as fundamentals regain prominence.