Welcome to a new trading week. The market nervously awaits the next headline in the Ukraine standoff amid ongoing uncertainty which is a plague for financial markets. The U.S. continues to believe that Russia is positioned to attack Ukraine but Russian President Vladimir Putin said that his country ‘does not want war’ in Europe. Putin accused the U.S. of failing to provide him with security assurances he needs to back down.
A meeting between the U.S. and Russia will be taking place this week and the euro and U.S. dollar could be vulnerable to elevated volatility.
Details of the meeting between Biden and Putin would be prepared during a meeting by U.S. Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov on Thursday, according to a French statement.
The anti-risk dollar struggled to gain ground. The euro slightly accelerated but the technical picture is far from clear. Thus, our forecast for the EUR/USD is neutral, provided that the pair remains trading between 1.1450 and 1.12.
A renewed break above 1.1470 could ignite fresh bullish momentum towards 1.1520 and 1.16. Bears, on the other side, will wait for renewed breaks below 1.1270 and 1.1170.
GBP/USD: The pair faces the resistance at 1.3650-60. A break above 1.3670 could push the pair towards 1.3750. Bears will wait for a break below 1.3540 in order to sell sterling towards 1.3450.
DAX – Chances for a bearish breakout increase
The index dipped again below the crucial 15000-mark and traders now eye the 14800-support. If 14800 breaks significantly, we could see a slide toward 14400 and possibly even 14000. Above 15550 the bias changes in favor of the bulls.
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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