Investors are beginning to regain vigilance with the risk of a Russian crisis with Ukraine that is about to return tense with reports that Russia is re-mobilizing 10 of its troops near Ukrainian territory.
This again makes the market wary after Russia had previously announced the withdrawal of their troops from the border.
Still, the US dollar has yet to react to expectations for a risky change in sentiment again seeing the currency’s gloomy king move until yesterday’s New York session.
The US dollar also did not react to the report of the minutes of the FOMC meeting earlier this morning which showed policymakers were ready to raise interest rates but did not mention a 50 basis point increase at the March meeting.
Similarly, in the New York session following the increase in published US retail sales data, also failed to trigger the strengthening of the US dollar.
The weak reaction of the US dollar to these factors saw the price on the EUR/USD chart continue to rise towards the 1.14000 level to test the SBR (support become resistance) zone.
After giving an early signal of a bullish trend change, the price that has moved above the Moving Average 50 (MA50) level in the 1 -hour time frame needs to pass the SBR zone of 1.14000 to give a clearer signal to investors for the upcoming rise.
The price increase will head back to the focus level around 1.14500 and also the high zone at 1.14800 which has not been successfully broken after being tested in recent weeks.
However, the development of the Russia-Ukraine crisis that could fuel market concerns again has raised expectations for an impending price drop if the US dollar strengthens again.
The decline is seen to be heading towards the focus zone at 1.12700-1.12500 where this zone has triggered a surge during the market reaction to the last European central bank (ECB) meeting.
The lower decline is still targeting up to the focus level at 1.12000 and also the support zone of 1.11300 which was tested in late January trading.
