EUR/USD: Break below Monday low of 1.0660 to trigger a drop to 1.05 – Scotiabank

EUR/USD slips after failing to extend through 1.08. Economists at Scotiabank expect the pair to test the Monday low near 1.0660.

ECB comments ahead

“ECB officials continue to manage rate expectations astutely, with rhetoric supporting the outlook for more tightening. ECB President Lagarde speaks today. Comments are likely to reaffirm the outlook for another 50 bps hike in Mar and more data dependent hikes (i.e., a likely downshift to 25 bps hikes) thereafter.”

“The EUR’s failure and rejection (via a bearish outside range signal on the 6-hour chart) against noted resistance around 1.08 yesterday seals the near-term technical outlook for the single currency and targets a retest of the Monday low near 1.0660. A break below here targets a drop to 1.05.”