Euro hit by the Ukrainian crisis on the forex market

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).

euro forex eur/aud

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, » Official Website

Disclaimer: Informations and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell currency contracts or CFDs. Although the information contained in this article has been taken from sources believed to be reliable, the author does not guarantee its accuracy, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone relies on such information.

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