EUR/USD: Regaining parity would add to the positive technical tone – Scotiabank

EUR/USD holds gains near key resistance above 0.99. The pair could gain more positive momentum recapturing parity, economists at Scotiabank report.

Ifo highlights recession risk

“Germany’s Ifo survey revealed slightly firmer than expected business confidence in Oct; the index fell only marginally from Sep’s upwardly revised 84.4 to 84.3. Expectations data were also slightly better than forecast (75.6) and up a fraction from Sep’s reading but the combination of a weak current assessment and expectations clearly point to recession risks in Germany.”

“We think gains above 0.9900/10 should allow for a test of major trend (off the Feb high) at 0.9935/40. Regaining 1.00+ would add to the positive technical tone in the near-term.”

“Support is 0.9810/15.”