EURUSD has formed lower highs and found support around the 1.1300 mark, creating a descending triangle on its hourly time frame. Price is testing support and could be due for a dip to the floor once more.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the top of the triangle is more likely to keep gains in check than to break. These moving averages also line up with the triangle resistance to add to its strength as a ceiling.

Stochastic is pointing lower to confirm that bearish pressure is in play. RSI is also moving south, without even reaching the overbought zone, indicating that sellers are eager to take over.

Stronger selling pressure might even spur a break below the triangle support and a selloff that’s the same height as the chart pattern or 100 pips.

There are no major reports due from both the eurozone and the US this week, leaving traders to focus mainly on geopolitical updates. As it is, headlines are filled with developments on the Russia-Ukraine conflict, particularly the possibility of more attacks between the two nations.

Russian President Putin acknowledged the pro-Moscow stance of separatist regions, sending more soldiers or “peacekeepers” to the border earlier this week. Germany already imposed some sanctions on the nation while the US is gearing up to announce more.

The primary concern for now appears to be a looming energy crunch, as Russia is a major supplier of natural gas to Western Europe and crude oil to the rest of the world. Attacks could result to production outages while sanctions could also restrict global supply, possibly limiting the flow of goods around the world and leading to even stronger inflation.