Risky market sentiment earlier in the week was seen slightly easing in Tuesday’s trading yesterday after Ukraine ratified the first temporary war -free zone to allow the evacuation of its citizens from Sumy and Mariupol.
The UN reports the total number of refugees so far has risen to 2 million.
Adding to the complacency of the war situation, Ukraine reportedly no longer intends to join NATO as previously opposed by Russia and was also the cause of the war that erupted over the course of the day.
As such, Tuesday's trading saw the US dollar move back weakly again defying investors' expectations to see the king of the currency strengthen after an encouraging NFP jobs report last week.
On the price chart of the EUR/USD pair, the falling price almost touched the 1.0800 level on Monday and rebounded from the support zone.
As of Tuesday’s New York session, the price has risen to the level around 1.09500 and gave an early signal for a bullish trend change after passing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of price movement.
The price increase if continued is seen to test the 1.1000 level as an initial resistance before continuing the movement of the more obvious bullish trend.
The next price increase will re -test the SBR (support become resistance) zone of 1.11300 before heading to the focus level of 1.12000.
On the other hand if the price resumes the bearish trend after making a price correction, the support level of 1.0800 is expected for the price to break through to record the latest lows again this week.
A lower decline will make the level around 1.0700 an initial target for investors to assess the price reaction whether the downtrend will continue or vice versa.
Investors will also be cautious for the movement of the Euro ahead of the European central bank (ECB) policy meeting on Thursday.
