The EUR/USD has lost ground at the start of the week, slipping in the early hours of Monday close to 120 pips lower. The pair has fallen from 1.0930 to a new 21-month low at 1.0808.
In European morning, the cross remains depressed, trading around 1.0816, down 1.08% on the day. The strong risk aversion that dominates the markets in the face of the escalation in the conflict between Ukraine and Russia, favors the dollar as a safe haven value against the single currency. The DXY index that measures the greenback has reached the 99.39 level in the last few minutes, its highest value since May 26, 2020.
European stock markets are trading at this time with sharp falls. The Eurostoxx 50 lost 2.45%, the German DAX lost 3.24% and the French CAC 40 fell 2.85%, while the Spanish Ibex 35 fell 2.98%.
The only relevant data of the day, the Eurozone Sentix investor confidence for the month of March, has also shown a very negative result, with a drop to -7 points, its lowest level since November 2020.
In the absence of data in the US session, traders will be very attentive to the macro news regarding the invasion of Ukraine by Russia, and the sanctions imposed by the West.
EUR/USD Levels
If you keep going back, the first support appears at 1.0799May 18, 2020 low. Further down, the target is at 1.0727floor of April 24, 2020, and finally in 1.06362020 low recorded on March 20.
To the upside, EUR/USD would need to recover above the 1.0930/35 barrier in order to move somewhat firmly towards the 1.1000 region.
Source: Fx Street
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