EUR/USD drifts around 1.07.  Economists at Scotiabanka nalyze the pair’s technical outlook.

EUR’s undertone remains soft from a short-term technical point of view

EUR’s undertone remains soft from a short-term technical point of view, with spot failing to hold gains overnight and retreating fairly easily back under 1.07. However, the USD itself is struggling to build on gains and really can’t break away from the 1.07 area at this point. 

More range trading around the figure seems likely in the short run. The longer the EUR can hold around the 1.07 point, the harder it will be for the USD to strengthen further