EUR/USD is following the risk-averse mood in markets to a test of 1.13. The pair could nosedive to the 1.10 level on any further Russian aggression against Ukraine, in the opinion of economists at Scotiabank.

Upside momentum has been limited

“EUR/USD risks losses to 1.10 if Russia makes a move into Ukrainian territory in the coming days.”

“The 1.1275/00 zone may act as EUR support as it did through late-December/early January, followed by the mid 1.12s, to prevent a test of the next big figure.”

“Upside momentum today and on Friday has been limited, resistance is ~1.1350 and the overnight high of 1.1369 followed by the 1.14 area.”