EUR/USD: Mild weakness persists, but 1.14 support remains intact – Scotiabank

EUR/USD Edges Lower Amid Persistent Dollar Strength

According to Scotiabank analysts Shaun Osborne and Eric Theoret, the EUR/USD currency pair has dipped just beneath the previous day's low, as the US Dollar continues to show resilience. Recent ECB figures indicate that inflation expectations across the Eurozone have eased, while President Lagarde has expressed caution regarding interest rate decisions due to ongoing concerns about energy prices. From a technical perspective, although the pair exhibits a subdued tone, the slight upward momentum observed since the mid-month 1.14 level persists. Key support is identified at 1.1500, with resistance around 1.1560.

Lagarde’s Prudence and Technical Levels in Focus

• The Euro has struggled to recover against the Dollar, slipping below yesterday’s low as USD strength continues.
• ECB data from February—prior to recent Gulf tensions—showed a decrease in inflation expectations, yet policymakers remain wary of potential energy price increases.
• President Lagarde noted that the magnitude of current shocks may be unprecedented, indicating the central bank will refrain from making swift rate changes until the situation is clearer.

Technically, the EUR/USD maintains a gentle upward bias established after testing the 1.14 level earlier in the month, despite a generally soft tone. Intraday support is set at 1.1500/05; a drop below this range could prompt another test of the 1.14 area. Resistance is located near 1.1560.

This article was produced with assistance from an AI tool and subsequently reviewed by an editor.