Euro Dollar Outlook: EUR/USD Breaks Resistance Despite Rising Risks

EUR/USD TALKING POINTS

• EUR/USD tests psychological resistance
• EUR continues to eye developments in Russia Ukraine war
• USD weighed down by risk sentiment despite hawkish Fed

Euro Dollar Outlook: Both Europe and the United States currently remain under pressure as the war between Russia and the
Ukraine remains at the center of risk sentiment.

Although the conflict between the two Eastern European countries remains unresolved, the global 
implications that follow may continue to weigh on EUR/USD, driving prices below the key psychological
level of 1.1200 which remains as critical resistance for the intermediary move.

TECHNICAL ANALYSIS

After failing to break below the 1.080 handle, price action has continued to test the 1.1000 which
currently remains as critical resistance. With the major currency pair now traing below this level, the
MACD remains in negative territory, a potential indication that the index may be vulnerable to further
declines.

EUR/USD Daily Chart

Euro Dollar Outlook: For now, support and resistance levels remain between the key psyhological levels of 1.08 and 1.120
which continue to provide both support and resistance for the short-term move. A break above 1.120
gives rise to to 1.129 with the next level of resistance holding firm at around 1.1400.

Meanwhile, failure to hold above 1.110, and a dip below 1.000 gives rise to the next critical level of
support, holding firm at around 0.090

Although the conflict between the two Eastern European countries remains unresolved, the global 
implications that follow may continue to weigh on, driving prices below the key psychological
level of 1.1200 which remains as critical resistance for the intermediary move.