EUR/USD, EUR/GBP and GBP/USD hold their breath on Ukraine tensions
EUR/USD, EUR/GBP and GBP/USD so far hold at minor support while on watch for war tensions.
EUR/USD’s slide continues amid ongoing Ukraine tensions
EUR/USD's sharp sell-off from its three-month spike high at $1.1495 has now taken it to below the 55-day simple moving average (SMA) at $1.1325, back to the middle of its December sideways trading range.
The early January low at $1.1272 remains in sight while the threat of war in Ukraine weighs on the cross. Further potential support comes in at the $1.1122 mid-February low.
Minor resistance continues to be seen between the late November and December highs at $1.1382 to $1.1386.
EUR/GBP still flirts with the 61.8% Fibonacci retracement
Last week’s fall through the 55-day SMA at £0.8418, took EUR/GBP back to the 61.8% Fibonacci retracement of the February rally to £0.836 around which it is still trying to stabilise.
Below yesterday’s low at £0.8346 lie the early January low at £0.8335 and the mid-January low at £0.8324. Key support is entrenched slightly further down between the January and early February lows at £0.8305 to £0.8286.
Any resistance of note is a long way off, namely between the January high and 55-day SMA at £0.8418 to £0.8422.
GBP/USD so far holds at the minor $1.3513 to $1.349 support zone
GBP/USD’s minor retracement lower from last week’s high at $1.3643 provoked a retest of the $1.3513 to $1.349 minor support area, made up of the mid-November high, 6 January and 7 February lows.
A drop through $1.349 may lead to the next lower $1.3455 to $1.3431 support zone being reached. It is comprised of the early as well as the 25 and 26 January lows and the 55-day SMA. Further down lies the January trough at $1.3359.
The 18 January low at $1.3573 offers minor resistance, ahead of stronger resistance which sits between the current February highs and the two-month resistance line at $1.3609 to $1.3643.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
