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Scotiabank analysts Shaun Osborne and Eric Theoret highlight that the EUR/USD pair is consolidating near 1.17 following gains driven by improved geopolitical sentiment. They note constructive risk reversals, favorable yield spreads, and reduced demand for downside protection as key factors supporting the Euro. The bank identifies the 1.1680–1.1780 range as critical for near-term price action, with upside potential if the pair breaks above 1.1780.
For forex traders, this analysis underscores the importance of monitoring technical levels and macroeconomic sentiment. The EUR/USD remains sensitive to geopolitical developments and central bank policy differentials, particularly between the ECB and the Fed. A sustained move above 1.1780 could attract further buying interest, while a breakdown below 1.1680 might reignite bearish momentum.
The broader implications for global markets include potential shifts in risk appetite and cross-asset correlations. Traders should watch for follow-through volume and key resistance levels beyond 1.1780. Central bank statements and upcoming economic data from the Eurozone and U.S. will also shape the pair’s trajectory in the coming weeks.
