EUR/USD: Credit Agricole recommends selling on rallies over 1.13/1.14

"The euro has been in demand in recent weeks, despite the fact that the markets expect further monetary easing in March. Risk aversion is what lifted the pair recently.

This is all the more true as speculative positions on the euro have remained high. However, positioning has become a little more neutral now, suggesting that expectations regarding ECB monetary policy will become increasingly important. Note that despite having promised monetary easing in March in hints, inflation expectations have not returned.

We believe that the cross will not manage to remain above 1.13-1.14. The downside risk will increase with the risk of seeing the ECB become more dovish than anticipated," says Credit Agricole.