EUR/SD holds above 1.12. Economists at Scotiabank analyze the pair’s technical outlook.

Some consolidation would not surprise

Price action looks mildly negative on the day and short-term gains are stretched. Some consolidation in spot gains would not surprise. 

The broader trend higher remains strong and bullish momentum suggests limited losses in the short run and more gains ahead. 

EUR/USD closing out the week above 1.1183 (200-Week Moving Average) will be an added plus.

See: EUR/USD could correct lower back to the 1.1170-80 area – ING