EUR/USD: the threat of cutting off gas supplies to the EU has d
Current trend
The EUR/USD pair moves within a corrective trend, trading around 1.1161.
Today is the deadline for transferring payments to rubles for Russian energy resources by "unfriendly" countries. The change in the settlement procedure was introduced since the foreign exchange reserves of the Central Bank of the Russian Federation were frozen by the EU countries after the start of a special military operation in Ukraine. After negative comments from EU leaders, investors feared that the Russian authorities might permanently cut off gas supplies. Still, tensions eased yesterday after German Chancellor Olaf Scholz and Italian Prime Minister Mario Draghi contacted Russian President Vladimir Putin to elaborate on the proposed calculation scheme. It was a signal that supplies would not stop, and the EU countries were ready to make contact.
The American currency has been declining for the second session in a row. This time, the reason for the negative dynamics was the report on the poor growth of the US economy. Analysts expected that Q4 GDP would increase by 7.1%, but the growth was only 6.9%. Additional pressure on the dollar was provided by poor Nonfarm Payrolls, which increased by only 455K, which is significantly lower than 486K a week earlier.
Support and resistance
The asset moves within a wide downward channel and yesterday's local growth did not affect the general trend. Technical indicators maintain a global sell signal: fast EMAs on the Alligator indicator are below the signal line, while the AO oscillator histogram remains in the sell zone.
Resistance levels: 1.1226, 1.1480.
Support levels: 1.1075, 1.0843.
The EUR/USD pair moves within a corrective trend, trading around 1.1161.
Today is the deadline for transferring payments to rubles for Russian energy resources by "unfriendly" countries. The change in the settlement procedure was introduced since the foreign exchange reserves of the Central Bank of the Russian Federation were frozen by the EU countries after the start of a special military operation in Ukraine. After negative comments from EU leaders, investors feared that the Russian authorities might permanently cut off gas supplies. Still, tensions eased yesterday after German Chancellor Olaf Scholz and Italian Prime Minister Mario Draghi contacted Russian President Vladimir Putin to elaborate on the proposed calculation scheme. It was a signal that supplies would not stop, and the EU countries were ready to make contact.
The American currency has been declining for the second session in a row. This time, the reason for the negative dynamics was the report on the poor growth of the US economy. Analysts expected that Q4 GDP would increase by 7.1%, but the growth was only 6.9%. Additional pressure on the dollar was provided by poor Nonfarm Payrolls, which increased by only 455K, which is significantly lower than 486K a week earlier.
Support and resistance
The asset moves within a wide downward channel and yesterday's local growth did not affect the general trend. Technical indicators maintain a global sell signal: fast EMAs on the Alligator indicator are below the signal line, while the AO oscillator histogram remains in the sell zone.
Resistance levels: 1.1226, 1.1480.
Support levels: 1.1075, 1.0843.