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Strategists Shaun Osborne and Eric Theoret from Scotiabank report that the EUR/USD currency pair is maintaining a strong bullish momentum, driven predominantly by broad-based weakness in the US Dollar (USD). The fundamental backdrop for the Euro (EUR) has steadily improved as front-end yield differentials between the eurozone and the United States have narrowed since late June, lending crucial structural support to the common currency. From a technical perspective, FX analysts note that the pair is eyeing potential upside targets near the upper 1.1700 resistance zone. The persistent selling pressure on the Greenback stems from shifting interest rate expectations and broader macroeconomic rebalancing, which continues to favor the European currency in the spot market. Traders should closely track incoming US economic data and upcoming Federal Reserve communications to assess if the dollar's downtrend will persist. Any hawkish pivot from US policymakers could interrupt the current trajectory, whereas sustained dollar weakness is likely to confirm the euro's extension toward multi-month highs.
