EUR/USD: geopolitical tensions put pressure on European assets
Current trend
The EUR/USD pair consolidates within a downtrend around the level of 1.1226 after yesterday's rise in price by 10% at once. Demand for the asset rose after Russian President Vladimir Putin announced a special military operation in Donbas yesterday.
The main reason for the decline is geopolitical tensions, due to which investors around the world are in uncertainty, and the likelihood that negative factors will cease to act immediately is extremely small. Over the past two days, the situation with energy prices has aggravated: the rate of oil has reached $100, and gas has exceeded $1.6K per thousand cubic meters, which is a serious problem for the EU countries in light of the freezing of certification of the Nord Stream 2 gas pipeline and the rejection of long-term contracts with Russia. Today, data on the GDP of Germany and France will be published, and, according to analysts' forecasts, the economies of the two leading EU countries may show a serious slowdown.
At yesterday's trading, at the time of the general decline in markets in Europe, the USD Index reached the highs of the year around 97.600, but by the end of the session in the US, quotes fell to the current level of 96.800. First and foremost, investors worldwide have sought a shelter asset and have found it in the dollar, which has long been trading at solid levels. Investors noted the positive report on US GDP, which rose to 7.0% from 6.9% in the fourth quarter.
Support and resistance
The instrument moves within a wide sideways range, approaching the support line. Technical indicators reversed and gave a new sell signal: fast EMAs on the alligator indicator crossed the signal line downwards, and the AO oscillator histogram crossed the transition level and forms downward bars.
Resistance levels: 1.1300, 1.1470.
Support levels: 1.1145, 1.1000.
The EUR/USD pair consolidates within a downtrend around the level of 1.1226 after yesterday's rise in price by 10% at once. Demand for the asset rose after Russian President Vladimir Putin announced a special military operation in Donbas yesterday.
The main reason for the decline is geopolitical tensions, due to which investors around the world are in uncertainty, and the likelihood that negative factors will cease to act immediately is extremely small. Over the past two days, the situation with energy prices has aggravated: the rate of oil has reached $100, and gas has exceeded $1.6K per thousand cubic meters, which is a serious problem for the EU countries in light of the freezing of certification of the Nord Stream 2 gas pipeline and the rejection of long-term contracts with Russia. Today, data on the GDP of Germany and France will be published, and, according to analysts' forecasts, the economies of the two leading EU countries may show a serious slowdown.
At yesterday's trading, at the time of the general decline in markets in Europe, the USD Index reached the highs of the year around 97.600, but by the end of the session in the US, quotes fell to the current level of 96.800. First and foremost, investors worldwide have sought a shelter asset and have found it in the dollar, which has long been trading at solid levels. Investors noted the positive report on US GDP, which rose to 7.0% from 6.9% in the fourth quarter.
Support and resistance
The instrument moves within a wide sideways range, approaching the support line. Technical indicators reversed and gave a new sell signal: fast EMAs on the alligator indicator crossed the signal line downwards, and the AO oscillator histogram crossed the transition level and forms downward bars.
Resistance levels: 1.1300, 1.1470.
Support levels: 1.1145, 1.1000.