EUR/USD Forecast: Euro needs to clear 1.0940 to extend recovery
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- EUR/USD has been fluctuating in a narrow channel above 1.0900.
- Risk perception is likely to continue to impact euro's valuation in near term.
- EUR/USD needs to clear 1.0940 resistance for an extended rebound.
After having ended the previous week in negative territory near 1.0900, EUR/USD has started the new week on a firm footing but has lost its bullish momentum near 1.0940. The pair stays relatively quiet above 1.0900 in the early European session and the shared's currency's performance against its major rivals largely depends on developments surrounding the Russia-Ukraine crisis.
On Sunday, Ukrainian negotiator and presidential adviser Mykhailo Podolyak said in a video statement that Russia understood that Ukraine wouldn't concede on any positions and added that talks had become more constructive.
Russian and Ukrainian officials are expected to hold the next round of talks at 0830 GMT on Monday. According to RIA news agency, Russian delegate Leonid Slutsky thinks that the latest progress in talks could open the door for an agreement in the coming days.
The market reaction to changes in the mood has been pretty straightforward since the beginning of the war. A renewed optimism for a diplomatic solution is likely to help the euro gather strength. On the flip side, the shared currency is likely to continue to face selling pressure in case market participants price in a prolonged conflict.
The economic calendar will not feature any high-tier data releases on Monday and investors will keep a close eye on geopolitical headlines.
EUR/USD Technical Analysis
EUR/USD met resistance at 1.0940 (Fibonacci 23.6% retracement of the latest downtrend) during the Asian session on Monday. In case the pair rises above that level and starts using it as support, additional gains toward 1.0970 (50-period SMA on the four-hour chart) and 1.1000 (psychological level, Fibonacci 38.2% retracement) could be witnessed.
On the other hand, 1.0900 (psychological level, static level) aligns as the first support before 1.0850 (static level) and 1.0800/05 (psychological level, March 7 low).
On a bearish note, the Relative Strength Index (RSI) indicator on the four-hour chart is staying below 50, suggesting that buyers are yet to dominate the pair's action.
- EUR/USD has been fluctuating in a narrow channel above 1.0900.
- Risk perception is likely to continue to impact euro's valuation in near term.
- EUR/USD needs to clear 1.0940 resistance for an extended rebound.
After having ended the previous week in negative territory near 1.0900, EUR/USD has started the new week on a firm footing but has lost its bullish momentum near 1.0940. The pair stays relatively quiet above 1.0900 in the early European session and the shared's currency's performance against its major rivals largely depends on developments surrounding the Russia-Ukraine crisis.
On Sunday, Ukrainian negotiator and presidential adviser Mykhailo Podolyak said in a video statement that Russia understood that Ukraine wouldn't concede on any positions and added that talks had become more constructive.
Russian and Ukrainian officials are expected to hold the next round of talks at 0830 GMT on Monday. According to RIA news agency, Russian delegate Leonid Slutsky thinks that the latest progress in talks could open the door for an agreement in the coming days.
The market reaction to changes in the mood has been pretty straightforward since the beginning of the war. A renewed optimism for a diplomatic solution is likely to help the euro gather strength. On the flip side, the shared currency is likely to continue to face selling pressure in case market participants price in a prolonged conflict.
The economic calendar will not feature any high-tier data releases on Monday and investors will keep a close eye on geopolitical headlines.
EUR/USD Technical Analysis
EUR/USD met resistance at 1.0940 (Fibonacci 23.6% retracement of the latest downtrend) during the Asian session on Monday. In case the pair rises above that level and starts using it as support, additional gains toward 1.0970 (50-period SMA on the four-hour chart) and 1.1000 (psychological level, Fibonacci 38.2% retracement) could be witnessed.
On the other hand, 1.0900 (psychological level, static level) aligns as the first support before 1.0850 (static level) and 1.0800/05 (psychological level, March 7 low).
On a bearish note, the Relative Strength Index (RSI) indicator on the four-hour chart is staying below 50, suggesting that buyers are yet to dominate the pair's action.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.