The USD is mostly lower since FED decisions on rates last week due to the “buy the rumor sell the news” impact , but not against the EUR. We assume that because of the situation in Ukraine the EUR is not on the investor’s list due to a lot of risks that remain on the table. There is a speculation that the economy in Europe can be in trouble as European companies that have operations in Russia are preparing for collateral damage as sanctions aim to penalize Russia’s economy.
Technically speaking, the EURUSD pair is not looking bullish either. We see a bearish ongoing trend after 1.123 breakouts that turned into a nice resistance recently. Notice that recovery from 1.080 was also in three waves, so that’s a corrective rally meaning it can be fully retraced. And this, can happen soon if we consider a broken trendline which is normally a confirmation for a fifth wave drop.
We could change the outlook for the pair if the price goes back above 1.12.