Select the account you'd like to open

FX analysis

Euro dollar faces ongoing pressure amid escalating geopolitical tension

euro dollar

Russia is not the only country that is suffering from the sanctions, the EU stocks and the Eurodollar all had a month-long drop amid the escalating geopolitical unrest. While the European Union heavily relies on Russia’s energy exports, the shortage of supply and inflation could dampen the region’s economy further, which badly weakens investment confidence.

At the same time, the commodity export countries, such as Australia, Canada, and New Zealand are on the track of a fast economic recovery path from the pandemic era. Sarcastically, the soaring commodity prices resulting from Russia’s invasion of Ukraine are lifting the local currencies and booming the exporting-backed economies.

In the forex markets, the one-side decline in the cross pairs for the EUR against these commodity currencies provides ongoing indications for the markets trends.

EUR/AUD- Daily

  • A double top pattern defines the pair is still in the downtrend, with MACD’s bearish crossover of the zero line.
  • The potential imminent support is at 1.5286, the low seen on February 24, then 1.51 (Fib. 100.00%)
  • The key potential medium resistance is at 1.5578, defined by the neckline of the double top pattern.

EUR/CAD - Daily

  • The long-term downtrend is intact, with the imminent support at yesterday’s low at 1.4090, then 1.4060.
  • In the condition of breaking down the imminent support, the medium-term target is 1.3708 (Fib. Ext. 100.00%).
  • The key resistance can be defined by the 50-day MA and 100-day MA, at 1.4380.

EUR/NZD - Daily

  • With MACD is crossing down the zero line, the bearish momentum of the pair is still in place. The next potential is 1.6343 (Fib 78.60%), then 1.6067 (the low in November 2021).
  • A potential rebounding might be near as RSI is falling to close the oversold territory. The near-term resistance is at 1.6560 (Fib 61.80%)

Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Sign up for market update emails