EUR/USD: EU intends to reduce dependence on Russian gas
Current trend
The European currency is gradually decreasing against poor macroeconomic statistics, trading around 1.0953.
The key event of the past week was the statement by Russian President Vladimir Putin that payment for natural gas supplies to "unfriendly" countries should now be made in rubles. The head of the European Commission, Ursula von der Leyen, noted that official Moscow's violation of contractual obligations is an attempt to circumvent Western economic sanctions imposed on the country after the start of a special military operation in Ukraine. EU High Representative for Foreign Affairs and Security Policy Josep Borrell stressed that European states would be able to refuse Russian gas supplies within two years since work has already begun to diversify sources and reduce dependence on energy raw materials from Russia. Also, at a press conference at the Doha Forum, the official noted that an agreement on a "nuclear deal" with Iran could be signed in the coming days. It will bring additional volumes of energy resources to the market. Meanwhile, German Chancellor Olaf Scholz said that Germany could stop importing coal and oil from Russia as early this year, noting that EU countries are still too dependent on imports. As for macroeconomic data, the business climate index in Germany continued to decline and dropped to 90.8 points in March from 98.5 points shown a month earlier. The index of business expectations corrected to 85.1 points from 98.4 points.
Against the backdrop of an impending new wave of crisis in the EU, the US dollar looks pretty stable, despite not very positive statistics. Thus, in February, the index of pending sales in the real estate market amounted to –4.1%, which was worse than the 1.0% growth predicted by analysts. The University of Michigan Consumer Sentiment Index stood at 59.4 in March, down from 62.8 in February.
Support and resistance
The asset moves within a wide downward channel, declining towards the support line. Technical indicators hold a strong global sell signal: fast EMAs on the Alligator indicator are below the signal line, while the AO oscillator histogram remains deep in the sell zone.
Resistance levels: 1.1071, 1.1341.
Support levels: 1.0894, 1.0680.
The European currency is gradually decreasing against poor macroeconomic statistics, trading around 1.0953.
The key event of the past week was the statement by Russian President Vladimir Putin that payment for natural gas supplies to "unfriendly" countries should now be made in rubles. The head of the European Commission, Ursula von der Leyen, noted that official Moscow's violation of contractual obligations is an attempt to circumvent Western economic sanctions imposed on the country after the start of a special military operation in Ukraine. EU High Representative for Foreign Affairs and Security Policy Josep Borrell stressed that European states would be able to refuse Russian gas supplies within two years since work has already begun to diversify sources and reduce dependence on energy raw materials from Russia. Also, at a press conference at the Doha Forum, the official noted that an agreement on a "nuclear deal" with Iran could be signed in the coming days. It will bring additional volumes of energy resources to the market. Meanwhile, German Chancellor Olaf Scholz said that Germany could stop importing coal and oil from Russia as early this year, noting that EU countries are still too dependent on imports. As for macroeconomic data, the business climate index in Germany continued to decline and dropped to 90.8 points in March from 98.5 points shown a month earlier. The index of business expectations corrected to 85.1 points from 98.4 points.
Against the backdrop of an impending new wave of crisis in the EU, the US dollar looks pretty stable, despite not very positive statistics. Thus, in February, the index of pending sales in the real estate market amounted to –4.1%, which was worse than the 1.0% growth predicted by analysts. The University of Michigan Consumer Sentiment Index stood at 59.4 in March, down from 62.8 in February.
Support and resistance
The asset moves within a wide downward channel, declining towards the support line. Technical indicators hold a strong global sell signal: fast EMAs on the Alligator indicator are below the signal line, while the AO oscillator histogram remains deep in the sell zone.
Resistance levels: 1.1071, 1.1341.
Support levels: 1.0894, 1.0680.