Following the tension between Ukraine and Russia earlier today, market volatility has increased dramatically and the Dollar is strengthening among most fx pairs. EURUSD despite trading at the beginning of the week close to 1.14. the end of the week finds it below 1.12.
EURUSD is approaching the January lows. Market participants prefer to shift their positions in favor of the Dollar considering the tension in Europe. This puts enormous pressure against EURUSD. Technically we mentioned in previous posts that in order for bulls to reclaim control and for a major higher low to be in place, price needed to push above 1.14. The last few days we saw several attempts by bulls, all met by a rejection. Price is vulnerable to a new lower low.