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Euro Dollar Outlook: EUR/USD Breaks Resistance Despite Rising Risks

Euro Dollar Outlook: EUR/USD Breaks Resistance Despite Rising Risks

Tammy Da Costa, Analyst

EUR/USD Talking Points

  • EUR/USD tests psychological resistance
  • EUR continues to eye developments in Russia Ukraine war
  • USD weighed down by risk sentiment despite hawkish Fed

Both Europe and the United States currently remain under pressure as the war between Russia and the Ukraine remains at the center of risk sentiment.

Although the conflict between the two Eastern European countries remains unresolved, the global implications that follow may continue to weigh on EUR/USD, driving prices below the key psychological level of 1.1200 which remains as critical resistance for the intermediary move.

EUR/USD Technical Analysis

After failing to break below the 1.080 handle, price action has continued to test the 1.1000 which currently remains as critical resistance. With the major currency pair now traing below this level, the MACD remains in negative territory, a potential indication that the index may be vulnerable to further declines.

EUR/USD Daily Chart

Euro Dollar Outlook: EUR/USD Breaks Resistance Despite Rising Risks

Chart prepared by Tammy Da Costa using TradingView

For now, support and resistance levels remain between the key psychological levels of 1.08 and 1.120 which continue to provide both support and resistance for the short-term move. A break above 1.120 gives rise to to 1.129 with the next level of resistance holding firm at around 1.1400.

Meanwhile, failure to hold above 1.110, and a dip below 1.000 gives rise to the next critical level of support, holding firm at around 0.090

Written by Tammy Da Costa, Analyst for DailyFX.com Contact and follow Tammy on Twitter: @Tams007

Follow Tammy on Twitter @Tams007

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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