Home Analysis EUR/USD is trading near 2017 Low amid the rising tension in Europe

EUR/USD is trading near 2017 Low amid the rising tension in Europe

EURUSD is trading near 2017 Low amid the rising tension in Europe - forexspacex.com

The EUR/USD is showing bearish signs as it traded near the 2017 low on Thursday against the US dollar. The Euro extended its decline during the trading session on Thursday reaching the major psychological support level at the 1.0400 mark.

The foreign exchange market is experiencing heightened volatility amid the rising tension between Russia and Europe. Market participants remain concerned after the warning of Russian vice president Dmitry Medvedev in response to the financial and military aid provided by NATO members to Ukraine. Consequently, the EUR/USD fell 1.28% the other day and is on course for a weekly decline.

The EUR/USD price action formed a bearish hammer near the 1.0400 level today. If bears can penetrate this support level without much struggle, then we can see a lot of selling activity. Meanwhile, The US dollar continues to benefit from the economic uncertainty in Europe due to its safe-haven appeal.  The US dollar index has managed to stay above the 104.8 level, the highest in 22 years.

The factory production figures for march month in Eurozone is expected to show a decline amid the high inflation. According to financial analysts, Eurozone inflation is not going to evaporate in the near term. The dovish stance of European Central Bank President Christine Lagarde is also creating trouble for the euro.

The near-term outlook for the EUR/USD is bearish according to multiple indicators on the daily chart. If the EUR/USD declines below the 1.0400 level, it will head towards the next support level at the 1.0350 mark. A move below this level will push the EUR/USD towards support at the 1.0300 mark. The relative strength index indicator is already in the oversold territory, but there are no signs of relief. At the best, we can expect a minor pullback but the decline will continue.

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