The war between Russia and Ukraine continues to exacerbate entire world markets with Russian military invasions into Ukraine still continuing to this day.
World leaders continue to discuss and several major countries have already begun imposing sanctions on Russia including France, Japan, South Korea and Taiwan.
Price movements on the currency market were also severe with the US dollar among significantly dominating in Thursday’s trading, yet more volatile in the New York session with a speech by US President Joe Biden.
As observed the price movement on the chart of the EUR/USD currency pair yesterday, the price has plunged to almost 200 pips hitting the level around 1.11100 at the beginning of the New York session yesterday.
This is the lowest successful level of prices recorded since last May 2020.
However, after reaching the lowest level, the price began to show a reversal by rising to the focus level of 1.12000.
While the rise also recorded up to 100 pips continuing into the Asian session this morning (Friday), analysts still see the price movement being in a bearish trend still moving below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame.
With the focus remaining on the Russo-Ukrainian war, the US dollar is likely to re-strengthen and push prices lower again.
Prices that continue to decline are seen to be targeting the latest lows towards the support zone 1.10000.
On the other hand, if the efforts of world leaders to work together to restrain Russia, the recovering market sentiment will have a more significant impact on the depreciation of the US dollar.
The price will be brisk making a rebound past the resistance zone at 1.12600 to signal a bullish trend change.
