As investors worried in the market earlier in the week, market sentiment returned to risk as the tensions of the Russia-Ukraine war crisis continued to heat up.
While still in the negotiation phase, Russia continued to step up aggression and attacks on Ukraine until yesterday.
Russian President Vladimir Putin has stated that the aggression will not stop until its objectives are achieved.
Thus, the price movement on Tuesday's trading yesterday returned aggressive again after flattening at the market opening earlier in the week.
The US dollar rebounded and put pressure on other major currencies that had risen slightly earlier.
True to analysts' forecasts, market risk-off sentiment again pushed the price down on the EUR/USD chart yesterday with a daily decline recorded around 140 pips.
Slightly rising in the European session yesterday, the price then plunged continuing into the New York session until hitting the latest lows around 1.10900 surpassing last week’s lows.
Moving the price below the Moving Average 50 (MA50) barrier level as an indicator of a bearish trend, the decline is expected to continue further towards the support zone target of 1.1000.
However, if the outcome of the negotiations is positive, it is likely that market sentiment will recover and the US dollar will show a decline.
The price may rise again and the initial resistance level to be tested is at 1.12000.
A higher rise will test the focus zone 1.12700 before heading to the SBR (support become resistance) zone 1.14000.
