EURUSD will break or Make? Looks weird below 1.06 levels. Moreover, Dollar Index is trading at around 100 while EUR is around 1.08. Above is the monthly chart of EUR which is taken from investing.com.
EURUSD is falling continuously as the Dollar index shot up to 100 levels. The tension between Ukraine and Russia now escalates to Nato and America. Global Inflations are high, stock markets are not able to perform, and Asian currencies are too trading at lower levels. USDINR is trading around 76.25.
Because of such pressure, today France told to the US to recover the loss from sanctions. If this situation arises then again there is pressure on global economies; may arise a world war situation but it’s too early to think about it.
EURUSD… Three consecutive closes + weekly close below 1.06 will take it to 0.92—0.88 levels in the coming months. EURUSD is trading around the crucial support level and the above condition fulfills the that will create a drastic situation for EURUSD. It looks scary but still, hopes are alive that it could bounce from lower levels.
EURUSD has resistance at 1.10 on a daily chart. A relief rally we expect on a weekly close above 1.10 levels for the upside target of 1.14—1.17 levels. Traders should have a keen eye on global matters and trade accordingly. On the monthly chart, RSI is trading near 35.00 while cross-over MACD is still in the negative zone. Pressure is on EUR and we have to watch carefully that it will break or make from the current scenario. Rest we are hopeful and expect that tension will release soon and we will see a good bounce in EUR. Remember that any tension escalates will see a free fall in the stock.