EUR/USD drifts back from the upper 1.0700s. Economists at Scotiabank analyze the pair’s outlook.

Support is 1.0720/1.0725

Grinding gains in the EUR/USD pair from the low 1.0700s appear to have stalled via a likely bearish ‘evening star’ signal on the intraday (6-hour) chart. 

Trend momentum is flat and losses may be slow in developing from here but the EUR’s stall around 1.0790 coincides with a test of the 100-Day Moving Average (1.0787) which has effectively served as resistance this week.