It’s Tuesday and we are back at our trading desks.
Markets have been in a tailspin since Russia’s attack on Ukraine. And the war continues.
While the invasion of Ukraine remains a source of fundamental volatility for the euro and other assets, traders look to the European Central bank decision this Thursday that may offer the euro some breathing space – at least in short-term time frames.
EUR/USD – Going Downhill
The euro slid toward a low of nearly 1.08 on fundamental risk stemming from the war in Ukraine and the collateral damage. If the euro holds, however, above 1.0770 we will shift our focus to a short-term resistance zone between 1.10-1.1050. Falling below 1.0770 could see lower targets at 1.0740 and 1.0650.
GBP/USD – On the way towards 1.30?
The cable’s slide below 1.3150 opens the door for a potential leg down towards 1.30 but the downward move is unlikely to be straight-lined given the oversold situation. We expect that the pair will correct some of its losses towards at least 1.32 before falling further down.
DAX – Sell-Off
The index slid even below 12600 but could stop its fall slightly before 12400. If the index is unable to stabilize above 13800, we could see a dive towards 11300.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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