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EUR/USD retreats to the lower 1.0800s. Analysts at Scotiabank assess the outlook for the currency pair.
The short-term downtrend is gathering momentum
ECB President Lagarde reiterated the necessity for policymakers to await further evidence of receding inflation. However, if data aligns with current projections, the central bank may initiate a gradual reduction in rate hikes by June. Subsequently, the ECB will maintain a data-driven approach and refrain from preemptively committing to policy adjustments.
Although a short-term downtrend is gaining traction, the daily DMI study remains neutral at present.
A breach below 1.0840 signals a potential test of the 1.0775/1.0800 levels.
Resistance is noted at 1.0875.
