EUR/USD Price Analysis: Looks quiet below 1.0800 as US recession fears mount
- EUR/USD is oscillating around 1.0800 as investors are mixed about further action from Fed.
- The Euro is not shown any action despite renewed Russia-Ukraine concerns.
- The major currency pair is looking for a cushion near the demand zone placed in a range of 1.0733-1.0760.
The EUR/USD pair is displaying topsy-turvy moves in a narrow range below 1.0800 in the early European session. The major currency pair is struggling to find direction as investors are in a fix about further action in the FX domain due to a light economic calendar this week. The Euro is not shown any action despite renewed Russia-Ukraine concerns.
Russian President Vladimir Putin said on the weekend that Russia plans to station tactical nuclear weapons in neighboring Belarus. He further added, “We're not transferring our nuclear weapons to Belarus but will station them there as the United States does in Europe.”
Meanwhile, the US Dollar Index (DXY) is continuously auctioning sideways after a gradual correction to near 103.00. Investors are mixed about further action from the Federal Reserve (Fed) as upbeat preliminary S&P Global PMI indicates that the central bank could continue tightening policy further. While tight credit conditions from small US banks after the fiasco have solidified the risk of recession in the US.
EUR/USD is looking for a cushion near the demand zone placed in a range of 1.0733-1.0760 on a four-hour scale. The 50-period Exponential Moving Average (EMA) at 1.0750 is providing a cushion for the Euro bulls. The ultimate resistance is plotted from February 01 high at 1.1033.
The Relative Strength Index (RSI) (14) has taken support around 40.00, and a reversal move is highly anticipated.
For further upside, the shared currency pair needs to surpass February 14 low at 1.0805, which will drive the asset toward January 18 high at 1.0887 and the round-level resistance at 1.0900.
On the flip side, a downside break below March 17 low at 1.0612 would drag the shared currency pair toward March 16 low at 1.0551, followed by March 15 low at 1.0516.
EUR/USD four-hour chart
