Price movements in early trade remained gloomy with most major currencies weakening other than the US dollar, with the Euro posting the lowest performance amid concerns over the announcement of new sanctions on Russia.
Although Russia has mobilized their troops in the northern regions of Ukraine, Kyiv has reported that genocide of civilians and war crimes have led to plans for the announcement of sanctions by western countries on the Kremlin.
The risk of further tensions rises again following comments by Ukrainian President Volodymyr Zelenskyy stating that it is difficult to negotiate with Russia after what they have done to his country.
As such, investors have seen the strengthening of the US dollar continue in trading earlier this week to regain momentum again after being dampened by a somewhat mixed NFP employment report.
On the price chart of the EUR/USD pair, the price is seen continuing its decline until the New York session passes the 1.10000 level.
The lowest level recorded yesterday was around 1.09600, which is the support zone for last week's trading.
The price is expected to remain moving in a bearish trend after slipping below the 1.1000 level and still below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
If the bearish pattern continues, the price is seen heading towards the level around 1.09000 to display a clearer bearish trend movement.
Continuing the lower decline, the price will test the support zone at around 1.08000.
However, if the price rises again above the 1.1000 level, the MA50 barrier will be tested before the price signals to move in the bullish trend again.
The price increase is seen to be heading up to the level of 1.12000 to test the resistance zone again after failing to break it on last week's rise.
