EURUSD rebounds on the de-escalation on the Russia-Ukraine border

Technical Analysis

Yesterday, the EURUSD reached the lowest levels since the ECB meeting last Thursday when ECBs Lagarde did not rule out a tightening in 2022.

The low price yesterday reached 1.1279 which coincides with the low price ahead of the press conference from Lagarde. It also was near the high of a swing area between 1.1263 and 1.1279 (see red numbered circles and lower yellow area).

In trading today, the price has moved higher on hopes for a de-escalation of tensions on the Russia/Ukraine border.

Reports that up to 10,000 troops have moved off the order (it only represents a small amount of the total number) , took some of the pressure off the EURUSD. Nevertheless, buyers came in and pushed price back up toward a higher swing area (see green numbered circles between 1.1359 and 1.13684). A move above that level would have traders looking toward the falling 100 hour moving average at 1.1378.

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