- EUR/USD maintains recent gains above 1.1350 ahead of Fed and US data.
- Tensions in Ukraine keep markets cautious and limit the pair’s rise.
- The 1.1325 level offers strong support, while the 100-day SMA looks like the key resistance.
EUR/USD lacks a clear directional bias so far on Wednesday as risk sentiment continues to waver amid the Russia-Ukraine crisis ahead of the release of US retail sales data. .and Fed minutes.
Markets remain in a wait-and-see mode, likely awaiting Russian President Vladimir Putin’s response to US President Biden’s skeptical comments about the withdrawal of Russian troops and the prospects of a de-escalation.
Meanwhile, the US dollar licks its wounds amid a rebound in Treasury yields, as investors refrain from taking new directional positions ahead of key US event risks.
EUR/USD bulls defied downside odds on Tuesday amid a sudden change in market sentiment. However, the bulls seem quite cautious, unable to extend the rally, as can be seen on the pair’s daily chart.
The pair is gaining strength to retest the critical resistance area near 1.1370, above which a rally towards the 100-day moving average is expected, sloping slightly down at 1.1403.
If the bulls continue to insist, then the psychological barrier at 1.1450 will come into the picture.
The 14-day RSI remains flat but above the midline, supporting the bullish view.
EUR/USD daily chart
On the other hand, the bears will struggle to regain control if the key support at 1.1325 breaks. That level is the confluence of the 21 and 50 day SMAs.
Further declines will test Monday’s low of 1.1280, below which the Feb 3 low of 1.1267 will be on sellers’ radar.
EUR/USD additional levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
