Market movements at the opening of trading earlier this week gave an indication that market sentiment had slightly recovered as of yesterday’s New York session after the war between Russia and Ukraine had dragged on for several days since last week.
Investors are wary as the crisis progresses in the negotiation phase between Russia and Ukraine but still has a say. Negotiations will resume today.
Price movements on major currency charts at the beginning of the week were slower and the US dollar was seen to decline slightly after the strengthening exhibited last week.
Examining the price chart of the EUR/USD pair yesterday, the price that opened lower in the Asian session has displayed a daily rise of around 100 pips with the high level at around 1.12460 reached in the New York session.
Recovering market sentiment has driven the rise as the pull on the US dollar as a safe-haven has faded slightly.
Giving an early signal for a bullish trend change, the price that re -crossed the 1.12000 level also moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame.
However, investors are still cautious as prices are still moving in a bearish pattern. Clearer instructions will be awaited.
If the price continues to surge higher for a bullish trend, the zonal expectation at 1.12700 at the close of last weekend’s trading will be tested again.
Passing that zone will push the price up to the SBR zone (support become resistance) 1.14000.
However, if the war crisis tightens again, the price will resume the decline past the current support zone around 1.11200.
The continued decline will mark the latest low since mid -2020 with the target level expected at 1.1000.
