EUR/USD: outperforming above deep support at 1.2150 - Scotiabank

Analysts at Scotiabank explained that the EUR has been outperforming most of the G10 currencies as it attempts a modest retracement of Wednesday’s bearish reversal from a fresh multi-year high. 

Key Quotes:

"Headline risk remains elevated and dominant in the absence of fundamental releases, as market participants gauge policymakers’ comments heading into next week’s ECB meeting. Several policymakers — including VP Constancio, France’s Villeroy, and Austria’s Nowotny — have expressed concern about the exchange rate, echoing sentiments expressed last September."

"EUR/USD short-term technicals: bullish, with risk of reversal—bearish signals highlighted in Wednesday’s daily were confirmed as EUR’s close allowed for the completion a key reversal from a fresh multi-year high, capping a three candle ‘evening star’ formation.

Daily trend and momentum indicators remain bullish however the DMI’s have already begun to converge and hint to a shift in the balance of risk. We look to near-term support at 1.2150."