EUR/USD has started the new week with a large bearish gap. As FXStreet’s Eren Sengezer notes, euro eyes fresh 20-month lows as tensions escalate.
USD to outperform its rivals in the risk-averse market environment
“Delegations from Russia and Ukraine are expected to meet for talks on the Ukraine-Belarus border. It's difficult to say whether or not sides will be willing to end the conflict and look for a diplomatic solution. In case that was to happen, EUR/USD could stage a decisive rebound. On the flip side, a lack of progress and a further escalation of the crisis could force the common currency to face additional selling pressure.”
“EUR/USD is facing interim resistance at 1.1200 (psychological level) ahead of 1.1260 (former support, static level) and 1.1300 (psychological level).”
On the downside, short-term support seems to have formed at 1.1150. In case a four-hour candle closes below that level, EUR/USD could extend its slide toward 1.1100 on its way to a fresh 20-month low.”
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