Russia's attack on Ukraine triggered dramatic moves in financial markets. The demand for haven assets soared, including the dollar.
EUR/USD falls sharply today in line with the rest of the assets associated with risk after Russian President Vladimir Putin ordered the invasion of Ukraine, which began early Thursday morning.
Investors turned to safety reinforcing demand for the dollar as well as other assets considered safer, such as the yen, Swiss franc, bonds and gold. Risk aversion has put strong downward pressure on EUR/USD.
The euro broke sharply the symmetrical triangle pattern below 1/8 Murray (1.1291), falling hard towards support zone -1/8 Murray at 1.1169.
EUR/USD is currently trading around -1/8 Murray and any technical bounce will be seen as an opportunity to continue selling the euro with targets at -2/8 Murray around 1.1108.
According to the daily chart, the euro is under strong downward pressure below the 21 SMA located at 1.1326. This means that any technical bounce that pushes the pair to this zone will only be an opportunity to continue selling the euro in the coming days.
The eagle indicator is moving below a downtrend channel with a negative signal. So, EUR/USD is likely to extend its downward move in the coming days.
Support and Resistance Levels for February 24 - 25, 2022
Resistance (3) 1.1291
Resistance (2) 1.1262
Resistance (1) 1.1215
----------------------------
Support (1) 1.1152
Support (2) 1.1108
Support (3) 1.1014
***********************************************************
Scenario
Timeframe Daily
Recommendation: sell below
Entry Point 1.1280
Take Profit 1.1169; 1.1230
Stop Loss 1.1300
Murray Levels 1.1352 (2/8), 1.1291(1/8) 1.1230 (0/8), 1.1169(-1/8)
***************************************************************************
