In the second half of the week, people who didn’t want to take risks made more people want to buy US dollars. The pair stays in its trading range, which is flat, and the technical outlook is not helpful right now.
Investors are worried about how open China is as, the country has trouble getting into the US, Italy, and South Korea.
Tensions between Russia and Ukraine make the market even worse. Sergei Lavrov, Russia’s foreign minister, said they wouldn’t use Ukrainian President Volodymyr Zelenskiy’s “peace formula” in talks with Ukraine. Earlier, news sites said that Russian missile attacks caused explosions in Kyiv and Kharkiv.
On Wednesday, the main indexes on Wall Street fell by more than 1%. Futures on US market indexes are up a little bit. If people look for safe havens in the afternoon, the EUR/USD may fall again.
The weekly initial jobless claims report from the US Department of Labor won’t change how the US dollar does against other currencies.
On a four-hour chart, EUR/USD currency pair is just above the 50-period Simple Moving Average (SMA), and the Relative Strength Index (RSI) is close to 50 after falling below it earlier.
The first barrier is 1.0680, the endpoint of the last upswing. This is followed by 1.0700, a psychological level, and 1.0735. (December 15 high).
The 50-period SMA gives support before the psychological level of 1.0600 and the Fibonacci 23.6% retracement level of 1.0580.
Conclusion
Risk sentiment is driving up demand for the pair. The US dollar fell a lot because of this. Statistics about US Jobless Claims are looked at.