Amid growing optimism over a potential Ukraine peace plan discussed by European leaders in London, the forex market saw notable moves, with EUR/USD testing key resistance, GBP/USD strengthening, and EUR/GBP falling to a three-month low.
EUR/USD Faces Resistance Test
Last week, EUR/USD failed to break through its key resistance zone between $1.0461 and $1.0533. However, the pair is now attempting another push into this range.
Support remains at $1.0360, last week’s low, followed by the mid-January high of $1.0354and the breached downtrend line at $1.0336. If buyers sustain momentum, another breakout attempt could be on the horizon.
EUR/GBP Hits Three-Month Low
The euro continues to weaken against the British pound, with EUR/GBP falling to £0.8243, its lowest level since December. Further downside could see the pair testing £0.8223, the December low.
Minor resistance is seen at £0.8264(late December low) and in the range of £0.8305 to £0.8310, marked by the February 26 high and the February 10 low.
GBP/USD Attempts a Recovery
GBP/USD is eyeing a retest of its mid-December high at $1.2729, following its recent rebound. On the downside, key support levels lie between $1.2564 and $1.2560(February 19 and last week’s lows), with additional support at $1.2550, the early February high.
If these levels fail to hold, GBP/USD may slip toward its January peak at $1.2524. However, continued bullish sentiment could see the pair advancing toward higher resistance levels.
For now, market direction will largely depend on geopolitical developments and investor sentiment surrounding the Ukraine peace talks.
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