EUR/USD: EUR edges nears 1.11 on technicals – Scotiabank

German Factory Orders rose 2.9% in July—a surprising gain which followed an upwardly revised rise of 4.6% for June.

Intraday chart is leaning a bit more EUR-bullish

“It’s a rare piece of good news for the economy which has shown signs of losing momentum recently. Orders data are volatile, however, and broader economic trends, reflected in recent surveys are clearly soft.”

“That is not subduing the EUR right now, however. Short term volatility is firm and demand for EUR bullish structures is reflected in the bounce in 1 week risk reversal pricing (0.3975 vol premium for calls).”

“Similar considerations apply to the EUR’s technical outlook. Limited movement is likely ahead of Friday morning but the picture on the intraday chart is leaning a bit more EUR-bullish. Solid gains yesterday took the EUR above short-term retracement resistance and target additional gains to the 1.1120/40 area. Support is 1.1070.”