The Euro/Dollar exchange rate is trading at 1.1300 on Tuesday morning, as investors keep an eye on the latest news from the Russia-Ukraine war in Ukraine.
According to the latest statistics from Germany, the IFO Business Climate Index showed a minor improvement in January. On a disappointing note, the IFO Current Assessment Index dropped to 96.1 from 96.9, a decrease of 0.1.
Evaluation Of The Technical Aspects
EUR/USD CHART Source: Tradingview.com
The EUR/rebound USD’s effort was greeted with opposition at 1.1330, where the 200-period simple moving average (SMA) on the four-hour chart intersects with the falling trend line that has been in place since mid-January.
While it remains below that level, sellers will probably maintain dominance over the pair’s movement. Furthermore, the Relative Strength Index (RSI) signal, which swings between 30 and 40, confirms the negative prognosis for the near term.
In terms of the downside, the next goal is 1.1270 (static level), which is followed by 1.1250 (static level) and 1.1230 (static level).
If the EUR/USD rises above 1.1330 and begins to use it as support, it has the potential to continue its recovery to 1.1350. (100-period SMA, the Fibonacci 61.8% retracement of the latest uptrend).
An Overview Of The Fundamentals
The EUR/USD tried to launch a comeback on Monday after plummeting to its lowest level in more than two weeks, but it ended up finishing the day in the red.
Early on Tuesday, the cross was trading in a pretty narrow band near 1.1300, and it is doubtful that it will be able to shake off the negative pressure.
The IFO Business Climate and Expectations indices showed a moderate improvement in January, according to statistics released on Tuesday by the German government.
On a bad note, the current assessment index dropped to 96.1 from 96.9 in December, indicating a dip in consumer confidence.
Meanwhile, rising geopolitical tensions in the wake of the Russia-Ukraine war are causing investors to steer clear of risky assets, allowing the Dollar to outperform its major competitors.
Additionally, market players are concerned about throwing the global economic recovery speed. Early Tuesday, the US Dollar Index rose to its highest possible level in more than two weeks, crossing the 96.00 mark.
Subsequently in the day, the Consumer Sentiment Index from the Conference Board will be the lone data point to be released in the United States’ economic calendar.
Nonetheless, S&P 500 and Nasdaq futures are down 1.35% and 2%, respectively, implying that another significant selloff in US equities could allow the Greenback to maintain its momentum in the second half of the trading day.
