- Dollar rally across the market pushes EUR/USD lower.
- Next support at January lows at 1.1120.
- World markets fall sharply, commodity prices skyrocket.
After a brief respite at the beginning of the European session, EUR/USD resumed the lows and broke below 1.1200, quickly falling to 1.1162, the lowest level since January 31st. Downward pressures remain intact, given the continuation of the dollar rally throughout the market.
The attack of Russia to Ukraine triggered dramatic moves in the financial markets. The demand for haven assets soared, including the dollar. The green ticket advances on all fronts, except against the yen. The DXY rises almost 1% and trades above 97.00. Wall Street futures are down 2% on average.
In the US, fourth-quarter growth data, jobless claims and new home sales will be released, but it is not expected to have a significant impact, as attention remains on events related to Russia and the impact of this on the markets.
The EUR/USD remains under pressure and if the decline extends, intermediate support may be found at 1.1155, with January’s bottom emerging at the 1.1120 area below. Only a return above 1.1200 could alleviate the bearish tone. A drop below 1.1119 would put the pair at the lowest level since May 2020.
Technical levels
Source: Fx Street
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