EUR/USD, EUR/GBP and AUD/USD sidelined as traders assess Russia-Ukraine crisis
EUR/USD, EUR/GBP and AUD/USD mixed as traders gauge impact of stepped-up sanctions on Russia.
EUR/USD remains above key support in the midst of Russia-Ukraine conflict
EUR/USD continues to hold above its May 2019, January and current February lows at $1.1122 to $1.1106 amid the fraught situation in Ukraine and stepped-up sanctions on Russia.
While this support area underpins, the early January and mid-February lows at $1.1272 to $1.128 may be revisited, just as they did on Friday. On the way there lies the $1.1186 November low.
As long as the cross stays below its one-month downtrend line and the 55-day simple moving average (SMA) at $1.1313 to $1.1324, however, downside pressure should remain in play. Failure at $1.1106 would have longer-term bearish implications with the April 2020 low at $1.1019 and the minor psychological $1.10 mark being in the spotlight.
EUR/GBP to remain above key support as traders assess developments in Ukraine
Last week EUR/GBP touched and then bounced off major support, comprising the January and early February lows at £0.8305 to £0.8286, as Russia launched a full-scale invasion of Ukraine.
On Friday EUR/GBP rallied all the way to £0.8408 before dropping back to its breached one-month resistance line, now support line, at £0.8348 in the Asian session.
Today the area between the 55-day SMA at £0.8389 and Friday’s high at £0.8408 is likely to cap with the 11 January low at £0.8324 offering minor support.
AUD/USD recovers from support as traders digest impact of stepped-up Russian sanctions
Last week’s sharp AUD/USD sell-off in light of Russia’s invasion of Ukraine ended within the $0.7106 to $0.7083 support area being probed and it bouncing off it and rallying to Friday’s $0.7237 high. The support zone contains the August, late December and January lows and should continue to hold.
While this is the case, the mid-December high at $0.7223 and Friday’s $0.7237 high are being eyed as well as the 10 February peak at $0.7248.
The next higher four-month resistance line and last week’s high at $0.7276 to $0.7284 should prove difficult to overcome today, however.
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