- Despite multiple attempts so far this session, the EUR/USD has not been able to break above the 1.1000 level.
- The euro ignored Eurozone PMI figures with traders concerned about Russia’s new demand for energy payments in rubles.
- Dollar strength amid the Fed’s hawkish turnaround and safe haven demand is also weighing on the pair.
Despite multiple attempts so far in the session, the EUR/USD it has failed to return north of the 1.1000 level and is currently trading closer to the session lows in the 1.0980 area, down around 0.25% on the day. The pair did gain some strength in early European trading as a result of stronger-than-expected preliminary Eurozone PMI figures for March, but this euro strength was short-lived, with traders still very focused on the war from Ukraine. The risks of an energy crisis in Europe increased after Russian President Vladimir Putin announced on Wednesday that hostile countries (including the EU) would have to buy Russian energy (including gas) in rubles.
EUR/USD also takes a hit amid a broadly strong US dollar which 1) reflects safe haven demand amid the ongoing Ukraine crisis and 2) reflects the recent aggressive shift in Fed communications and subsequent upward move in US yields. With the 21-day moving average (now at 1.1034) continuing to act as a strong resistance level, a drop in EUR/USD at this point looks more likely than a sustained break back to last week’s highs of 1.1100. The bears will be watching for a possible retest of the recent lows near 1.0800.
Geopolitics, of course, remains a key issue to consider, as the G7 and the EU announce tougher sanctions against Russia and NATO announces a reinforcement of its forces on its eastern flank.
Technical levels
EUR/USD
| Panorama | |
|---|---|
| Last Price Today | 1.0978 |
| Today’s Daily Change | -0.0027 |
| Today’s Daily Change % | -0.25 |
| Today’s Daily Opening | 1.1005 |
| Trends | |
|---|---|
| 20 Daily SMA | 1.1039 |
| 50 Daily SMA | 1.1219 |
| 100 Daily SMA | 1.1279 |
| 200 Daily SMA | 1.1516 |
| levels | |
|---|---|
| Previous Daily High | 1.1044 |
| Previous Daily Minimum | 1.0964 |
| Previous Maximum Weekly | 1.1138 |
| Previous Weekly Minimum | 1.0901 |
| Monthly Prior Maximum | 1.1495 |
| Previous Monthly Minimum | 1.1106 |
| Daily Fibonacci 38.2% | 1.0995 |
| Daily Fibonacci 61.8% | 1.1013 |
| Daily Pivot Point S1 | 1.0965 |
| Daily Pivot Point S2 | 1.0925 |
| Daily Pivot Point S3 | 1.0885 |
| Daily Pivot Point R1 | 1.1044 |
| Daily Pivot Point R2 | 1.1084 |
| Daily Pivot Point R3 | 1.1124 |
Source: Fx Street
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