EUR/USD retreats to the 1.0500 area after Putin’s comments
- Russian President Putin warns of increased nuclear war risks.
- Market sentiment deteriorates briefly after comments, then rebounds.
- EUR/USD up for the day but off highs.
The EUR/USD dropped below 1.0500 following comments from Russian President Putin. The Euro is among the weakest currencies of the American session. Earlier it peaked at 1.0549, the highest level in two days.
A choppy session
Market sentiment deteriorated briefly after Russian President Vladimir Putin said the threat of nuclear war is on the rise. He added they have the most advanced weapons but they don’t want to use them. He considers it possible using nukes as a response to an attack.
Wall Street is moving between gains and losses. The S&P 500 is up 0.28%, after falling during the previous four trading days. Crude oil prices are back in negative territory. The US Dollar is mixed, with the DXY down 0.35%, off lows.
Unclear signs
The Euro is rising versus the US Dollar after two consecutive daily losses, recovering from the three-day lows. The main trend remains bullish with a focus on the 1.0600 area which is the critical resistance for the moment. On the flip side, the key area is seen around the 1.0400 area; before that level support levels are seen at 1.0480 and then 1.0440.
As of writing, EUR/USD is hovering around 1.0500, up for the day but off highs. The 20-hour Simple Moving Average stands at 1.0480 and a slide below would change the intraday bias to bearish.