Events are developing so rapidly that it is almost impossible to follow the news. Nevertheless, the general character of the development of the situation is quite unambiguous - the Russian Federation has launched a military operation against Ukraine. That is, we are talking about a war in Europe. Investors are fleeing in a panic from rising risks. So there is nothing surprising in the fact that the single European currency is losing ground. There is little doubt that this trend will not change in the short term. Everything else doesn't matter.
Moreover, the European Union itself is exacerbating the economic consequences of everything that is happening by halting the certification of the Nord Stream 2 gas pipeline. So energy prices are growing at some incredible rate, which will have an extremely negative impact on the European economy. You can forget about any macroeconomic statistics for now. The only thing that determines the dynamics and direction of the markets now is the news from Ukraine.
The EURUSD currency pair showed strong downward interest, as a result of which the quote fell by more than 100 points. This led to the local oversold status of the euro, but not to the end of the downward cycle. Thus, keeping the price below 1.1200 may well increase interest in short positions, which will lead to a movement towards the low of the downward trend.
The GBPUSD currency pair, during an intensive downward move, returned to the support area of 1.3480/1.3500, where there was a slight reduction in the volume of short positions. So, in order to prolong the downward cycle, it is necessary to stay below the value of 1.3480, otherwise, the price may rebound.
