Market sentiment at the beginning of this week's trading was assessed as still risky with the development of negotiations between Russia and Ukraine still not giving positive results after several rounds of negotiations have taken place.
Negotiations will resume on Tuesday.
Russia will reportedly stop exports of barley, corn and wheat, as well as join Belarus to stop paying for energy supplies in US dollars.
Meanwhile, the European Union (EU) announced another wave of sanctions on Russia, while there were also reports that China would provide assistance for economic and military support to Russia.
The still-risky environment continues to give an advantage to the safe-haven currency of the US dollar while investors are also awaiting the outcome of this week’s FOMC meeting in anticipation of a rate hike by the Federal Reserve (Fed).
On the price chart of the EUR/USD pair, the price movement was flat at the beginning of the week below the resistance level of 1.1000 in the New York session yesterday after the increase made in the previous session.
However, the price failed to continue rising above the 1.1000 level and also the Moving Average 50 (MA50) barrier level on the 1 -hour time frame which signals to continue the bearish movement of the price.
The lower decline is still expected to test the support zone at 1.0800 which tried to hit the price in early trading last week.
The decline that continues past the support is seen to also lead to the level around 1.0700 to record the latest low.
Yet if the bulls manage to break the resistance at 1.1000, investors will evaluate additional indicators for price trend change signals.
The next higher rise will test the SBR zone (support become resistance) around 1.11200 which was the resistance to last week's price increase.
As for the Euro, investors will also pay attention to the release of the ZEW survey German economic sentiment report which will be published in the European session soon.
