EUR/USD: Bullish trend eyes 1.20 breakout – Scotiabank

💡 DMK Insight

The Euro’s slight uptick against the Dollar is noteworthy, but its underperformance compared to other G10 currencies raises questions. Traders should pay attention to the sentiment shift and options pricing that suggests a preference for upside protection. This could indicate that market participants are bracing for potential volatility or a bullish reversal in the Euro. If the Euro can break above key resistance levels, it might catch up with its G10 peers, but until then, caution is warranted. Keep an eye on the broader economic indicators, especially any shifts in U.S. monetary policy that could impact the Dollar’s strength. The real story is how the Euro’s lagging performance could affect correlated assets, particularly Euro-denominated commodities or equities. Watch for any significant economic data releases or central bank comments that could shift sentiment quickly. A sustained move above recent highs could signal a stronger bullish trend, while failure to do so might lead to further consolidation or downside risk.