Brown Brothers Harriman analyst Elias Haddad is flagging downside risks for the euro against the US dollar, with key support identified at the 1.1400 level. The warning comes as markets await the European Central Bank’s April meeting account, which Haddad expects will confirm the bank’s tightening stance. Traders have already priced in strong probability of an ECB rate hike in June, potentially lifting rates to 2.25%.
The technical outlook suggests euro weakness despite hawkish ECB expectations, indicating other factors may be weighing on the single currency. The 1.1400 support level represents a critical threshold for EUR/USD positioning in the near term. Currency traders and forex desks should monitor whether the pair holds above this technical floor or breaks lower, which could trigger additional downside momentum. The divergence between anticipated ECB tightening and euro weakness suggests markets may be factoring in broader growth concerns or relative dollar strength.
FXnCO Insight
Watch EUR/USD closely at 1.1400 support as a break below could accelerate euro selling despite June rate hike expectations already priced in.
Source: FXStreet