As expected, tensions of the geopolitical crisis between Russia and Ukraine rose again and enveloped trade earlier this week.
Russia's actions are seen to further complicate the situation and further distance peace, and even increase the likelihood of war breaking out.
Thus, concerns that have also plagued the financial markets have seen safe-haven currencies show an increase as investors shift towards safe investments in a risky market environment.
The US dollar again showed a strengthening in the New York session yesterday after moving gloomily in previous sessions during the opening of trading earlier this week.
Despite failing to compete with safe-haven currencies such as the Yen and Swiss franc, the US dollar managed to put pressure on high return currencies such as the Aussie and Kiwi dollars, as well as the European Pound and Euro currencies.
Observing the price movement on the chart of the EUR/USD currency pair, the price met the forecast to make a decline in the New York session to continue the previous bearish pattern.
The price increase since the beginning of the Asian session yesterday only tested the SBR (support become resistance) zone of 1.14000 before declining lower than the opening price earlier in the week.
Moving back below the Moving Average 50 (MA50) barrier level on the 1 hour time frame signals for a bearish trend again.
The decline is seen to be heading towards the 1.12700-1.12500 zone which has been the focus of trading in previous weeks and is expected to give an interesting reaction in that zone.
The next lower price drop will test the level of 1.12000 or even lower towards the support zone at around 1.11300.
On the other hand if the situation changes and the price makes a rise again, the SBR 1.14000 zone is still an important zone for price testing.
Only a rise beyond the zone will signal a change in the bullish trend of the price and then return to the target of the resistance zone at 1.14800.
