EUR/USD, EUR/GBP and AUD/USD bounce off support as traders assess Russia-Ukraine crisis
EUR/USD, EUR/GBP and AUD/USD recoup yesterday’s losses as traders gauge the impact of increased sanctions on Russia.
EUR/USD stabilises as traders assess Russia-Ukraine conflict
Yesterday EUR/USD slid to its May 2019 low at $1.1106 before recovering back towards the $1.1186 November low earlier today, as traders assess the Russia-Ukraine conflict and the impact of increased European sanctions on Russia.
Key support remains to be seen at the January and current February lows at $1.1122 to $1.1106 with minor resistance coming in between the early January and mid-February lows at $1.1272 to $1.128.
While the currency pair remains below its one-month downtrend line and the 55-day simple moving average (SMA) at $1.1325 to $1.1329, downside pressure retains the upper hand. Failure at $1.1106 on a weekly Friday closing basis would have longer-term bearish implications with the April 2020 low at $1.1019 and the minor psychological $1.10 mark being in view.
EUR/GBP recovers from key support as traders gauge risk of Russian invasion of Ukraine
EUR/GBP hit and then bounced off major support, consisting of the January and early February lows at £0.8305 to £0.8286, as Russia launched a full-scale invasion of Ukraine on Thursday.
Overnight the UK GfK Consumer Confidence indicator, a gauge for the general economic situation of the country, fell to its lowest level in 13 months at 26 in February, as consumer mood was dampened by fears about the impact of steep energy, food and utilities price rises, increased taxation and interest rate hikes.
This hardly affected the EUR/GBP cross, however, as it continues to try to break through its one-month resistance line at £0.8357 and reach the 55-day SMA and mid-February high at £0.8392 to £0.8402. For today minor support sits at the 11 January low at £0.8324.
AUD/USD recovers from support as traders digest impact of Russia sanctions
AUD/USD’s sharp sell-off in light of the full-scale invasion of Ukraine by Russia on Thursday ended within the $0.7106 to $0.7083 support area, comprising the August, late December and January lows. From there a recovery rally is currently being witnessed.
The mid-December high at $0.7223 is now in focus with the 18 February high sitting slightly above it at $0.7227 as well as the 10 February peak at $0.7248.
The next higher four-month resistance line and this week’s high at $0.7276 to $0.7284 should prove difficult to be overcome today, however.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
