Euro hit by the Ukrainian crisis on the forex market
With European NATO allies potentially on the brink of sharing a closer border with Russia, the euro was the hardest hit major currency overnight. EUR/CAD probed the January low and EUR/CHF sank to its lowest level since the infamous January 2015 (when SNB removed the Swiss franc peg to the euro).
EUR/AUD has now fallen over -5% from this month’s high and has traded lower for 10 consecutive days. This is only its second 10-day bearish streak in 10 years. At some point mean reversion will kick in but only when sentiment allows it to. From here, the February 2021 is less than a day’s ATR away although something to look out for is whether prices can now remain below the November 2021 low. As a break back above it could be an early indication that mean reversion is finally underway. Although that likely requires a positive headline or two from the Ukraine crisis to appear, before we can expect a sustained countertrend rally.
By Matt Simpson, Forex.com » Official Website
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