Risk market sentiment is influenced by the latest developments in the Russia-Ukraine war issue which is back in the spotlight this week.
After Ukraine launched an attack last Tuesday, Russia retaliated against eastern Ukraine on Thursday and following that, Russian President Vladimir Putin spread a warning of global conflict following the United States (US) and Britain allowing Ukraine to use their weapons.
Thus, the situation has had an impact on the market which saw the US dollar as a safe-haven currency continue its strengthening towards the end of this week.
Looking at the EUR/USD currency pair chart, the price has extended its decline to the latest low for this year yesterday, surpassing the level reached last week.
Support 1.05000 was broken by the price with a decline in the New York session yesterday reaching around 1.04600 before the price movement leveled off until continuing into the Asian session this morning (Friday).
The trend remains bearish with price movement below the Moving Average 50 (MA50) line on the 1-hour time frame on the EUR/USD chart since last Wednesday.
The price is seen to tend to fall lower with the nearest target expected to reach the 1.04000 zone.
However, a change in price direction could occur in the usual trading pattern at the end of the week with the possibility of profit taking activities by market players.
If the price rises again above the 1.05000 level and then breaks through the MA50 barrier, we expect a resumption of the price increase to occur.
The resistance level at 1.06000 will return to the focus and still remain an obstacle to the price increase attempt at the beginning of this week.
