EUR/USD Price Analysis: Looks to resume the upside towards 100-DMA, Fed minutes eyed
- EUR/USD holds the recent gains near 1.1350 ahead of Fed, US data.
- Ukraine tensions keep markets on the edge, cap the pair’s upside.
- 1.1325 offers strong support while 100-DMA appears a key resistance.
EUR/USD is lacking a clear directional bias so far this Wednesday, as the risk sentiment remains tentative amid the Russia-Ukraine crisis while heading into the US Retail Sales and the Fed minutes release.
Markets remain in a wait-and-see mode, likely awaited response from the Russian President Vladimir Putin to his US counterpart’s skeptical comments on the former’s troops' withdrawal and prospects for a de-escalation.
Meanwhile, the US dollar licks its wounds amid sluggish Treasury yields, as traders refrain to place any fresh directional bets ahead of the key US event risks.
EUR/USD bulls deified the bearish odds-on Tuesday amid a sudden turnaround in the market sentiment. However, bulls appear rather cautious, unable to extend the previous upsurge, as seen on the major’s daily chart.
The price is gathering strength to retest the critical resistance area near 1.1370, above which a rally towards the mildly bearish 100-Daily Moving Average (DMA) at 1.1403 will be on the cards.
If bulls keep insisting, then the 1.1450 psychological barrier will come into the picture.
The 14-day Relative Strength Index (RSI), remains flat but above the midline, supporting the bullish view.
EUR/USD: Daily chart
On the other side, bears will fight back control if the 1.1325 key support gives way. That level is the confluence of the 21 and 50-DMAs.
Additional declines will test Monday’s low of 1.1280, below which the February 3 low of 1.1267 will be on the sellers’ radars.