EUR/USD ended up posting its lowest daily close in two weeks on Wednesday. Economists at TD Securities expect the pair to challenge 0.96 on a dip under 0.9750/0.9800.

ECB will have a tougher time on fighting a higher Fed terminal rate

“The break above downtrend resistance (established from the February highs) in EUR/USD is a false dawn.”

“We spot key support into 0.9750/0.9800 where daily uptrend support from the October low comes in. A breach of that would easily expose 0.96.”

“The ECB will have a tougher time on fighting a higher Fed terminal rate. We seriously doubt the ECB can push their own terminal rate estimates that much higher.”