Being the focus issue this week, the escalating Russia-Ukraine crisis is set to have an impact on financial markets with market sentiment assessed as risky.
With the attraction of safe-havens rising, the US dollar also received a positive temps after US inflation data published last week also expected a strengthening US dollar this week.
This situation will again put great pressure on other major currencies in the market especially the European currency.
On the price chart of the EUR/USD pair, the price has started giving signals for a change in the bearish trend or a decline in the price.
After last Thursday's rally reached a high of around 1.14900, the price fell back 160 pips until last week's close of trading at around 1.13300.
The decline below the Moving Average 50 (MA50) barrier level on Friday has already begun to signal for a change in the bearish trend in addition to the strengthening of the US dollar which will push prices lower.
The ongoing situation will see prices decline towards the focus zone around 1.12600 during the price spike that occurred at the previous European central bank policy meeting.
Further decline in the price is likely to go to the level of 1.12000 or lower to return to the support zone at 1.11300.
On the other hand, if there is a price surge again, the level of 1.14000 will be the initial focus of the price to test the SBR (support become resistance) zone.
The higher rise will return towards the high zone reached last week before continuing the climb to the level around 1.15300 for the price to record the latest 14 -week high.
