It seems that things are getting worse. The US and EU impose new sanctions almost every day. In response, Russia does the same. Moreover, it is still unclear whose economy will be hurt most by sanctions. Some analysts suggest that Western countries have been caught off guard. They do not know what to do. This is why they introduce new sanctions, hoping that they will bring at least some results. At the same time, Russia has a more coordinated plan of countermeasures as if it had made one in advance. So, countries involved in the conflict should brace for new sanctions. Meanwhile, the war in Ukraine is in full swing. Investors are dumping risky assets, refocusing on the safe-haven ones. Currently, the most popular safe-haven currency is the US dollar. It has been gaining momentum against its rivals for some time. Given that the likelihood of the de-escalation of the conflict looks unlikely, the greenback is sure to rise higher in the next few days.
The EUR/USD pair is extremely volatile due to high speculative activity. Investors seek shelter in the US dollar as a safe-haven asset from market headwinds.
The RSI indicator is moving below the 30/50 line on the 4H chart. It signals a downward movement.
The Alligator indicator shows that the moving averages are also located in the negative zone on the 4H chart. There are no intersections between the moving averages.
On the daily chart, there is a prolongation of the medium-term downtrend.
Outlook
The new trading week kicked off with a large gap. After that, the pair declined to 1.1121. So, there might be a slight pullback. It could help the euro recoup losses after the gap. Nevertheless, the bearish sentiment is strong. So, the pair is trading below 1.1100, which may lead to a prolongation of the downward trend.
The complex indicator analysis gives a buy signal on the short-term chart due to the price rebound. Technical indicators show a downward movement on the intraday and medium-term charts, signaling short positions.
