EUR/USD: EU economies are under pressure
Current trend
The European currency is falling after the opening of trading this week. Unlike the US dollar, which investors consider a shelter asset, the euro is under pressure from geopolitical risks. The EUR/USD pair is currently trading within a downtrend around 1.1148.
The EU countries are imposing sanctions on the Russian Federation after the Russian authorities launched a special military operation in the Donbas on February 24, which will cause more damage to the EU economy. Already nine EU countries have closed their airspace to Russian aircraft, to which Russia has responded similarly, and now the flight from Germany or Poland to Japan is getting difficult. Gas prices are kept above $1,300 per 1K cubic meters and, according to experts, may soon exceed the level of 2000. According to Friday's data, the level of German GDP began to decline sharply, and only 1.8% of the annual growth of 2.8% remained.
Against the backdrop of a significant increase in the US dollar, the EUR/USD pair positions seem to be critical. USD Index is at the year's highs, around 97.350, and in the event of a further increase in tension in Ukraine, its further strengthening is almost guaranteed. Also, the March meeting of the US Federal Reserve is approaching, and analysts continue to show confidence that the regulator will raise the rate, perhaps by 50 basis points at once.
Support and resistance
The pair moves within a wide sideways range, trying to break the support line. Technical indicators maintain a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars, being in the sell zone.
Resistance levels: 1.1237, 1.1450.
Support levels: 1.1105, 1.0900.
The European currency is falling after the opening of trading this week. Unlike the US dollar, which investors consider a shelter asset, the euro is under pressure from geopolitical risks. The EUR/USD pair is currently trading within a downtrend around 1.1148.
The EU countries are imposing sanctions on the Russian Federation after the Russian authorities launched a special military operation in the Donbas on February 24, which will cause more damage to the EU economy. Already nine EU countries have closed their airspace to Russian aircraft, to which Russia has responded similarly, and now the flight from Germany or Poland to Japan is getting difficult. Gas prices are kept above $1,300 per 1K cubic meters and, according to experts, may soon exceed the level of 2000. According to Friday's data, the level of German GDP began to decline sharply, and only 1.8% of the annual growth of 2.8% remained.
Against the backdrop of a significant increase in the US dollar, the EUR/USD pair positions seem to be critical. USD Index is at the year's highs, around 97.350, and in the event of a further increase in tension in Ukraine, its further strengthening is almost guaranteed. Also, the March meeting of the US Federal Reserve is approaching, and analysts continue to show confidence that the regulator will raise the rate, perhaps by 50 basis points at once.
Support and resistance
The pair moves within a wide sideways range, trying to break the support line. Technical indicators maintain a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars, being in the sell zone.
Resistance levels: 1.1237, 1.1450.
Support levels: 1.1105, 1.0900.
Feragatname
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.