The market nervously awaits the next headline in the Ukraine standoff amid ongoing uncertainty, a plague for financial markets. The US believes 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 US of failing to provide him with security assurances he needs to back down.
A meeting between the US and Russia will be taking place this week, and the euro and US dollar could be vulnerable to elevated volatility.
According to a French statement, details of the meeting between Biden and Putin would be prepared during a meeting by US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov on Thursday.
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, at least as long as the pair is trading between 1.1450 and 1.12.
A renewed break above 1.1470 could ignite fresh bullish momentum towards 1.1520 and 1.16. On the other side, Bears will wait for renewed breaks below 1.1270 and 1.1170.
GBP/USD Technical View
The GBP/USD 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 to sell sterling towards 1.3450.
DAX – Chances of a Bearish Breakout Increase
The DAX 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.
We went short this morning at 15170 and could pocket a 40-points profit.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumptions of MaiMarFX traders. They are not meant to solicit or recommend buying or selling a specific financial instrument.