EUR/USD, AUD/USD and EUR/GBP slip on escalating tensions between Russia and Ukraine

​EUR/USD slips amid mounting crisis in Ukraine

EUR/USD is seen heading back down again as President Putin declared parts of Eastern Ukraine as independent entities while President Biden issued an executive order restricting American business in Donetsk and Luhansk.

Last week’s low at $1.1281 and the early January low at $1.1272 are thus back in the spotlight. Further support can be spotted between the late December and January lows at $1.1236 to $1.1222.

While the currency pair stays below the mid-February and yesterday’s highs at around $1.1396, downside pressure should retain the upper hand.

The gradual EUR/GBP slide is ongoing

EUR/GBP continues to slide as sterling strengthens, benefitting from a Covid-19 post-Omicron growth rebound and expectations for further Bank of England (BoE) interest rate hikes.

Major support seen between the January and early February lows at £0.8305 to £0.8286 is about to be revisited but is expected to hold today.

Minor resistance can be found along the one-month resistance line at £0.8358. Further up resistance can be spotted at the £0.8381 November low and also at last week’s high and 55-day simple moving average (SMA) at £0.8402.

AUD/USD consolidates below the four-month resistance line at $0.7219

Last week’s rise in AUD/USD is taking a breather with the cross so far remaining below the October-to-February resistance line at $0.7219, a rise above which is needed for the current February spike-high at $0.7248 to be reached. If exceeded, we would favour a bullish extension to the January peak at $0.7314.

Minor support sits between the early February high at $0.7168 and the early January low at $0.713 and more significant support between the August, late December and January lows at $0.7106 to $0.7083. While it underpins, like it did last week, the currency pair remains in a short-term uptrend.