According to Scotiabank’s chief FX strategist Shaun Osborne, EUR/USD remains unchanged on the day. However, he notes that the Euro may attempt to test the 1.0950 resistance level in the near future.
Osborne explains, “European natural gas prices have surged to their highest levels since late 2023 due to supply disruption concerns following Ukraine’s recent advance into the Kursk region in Russia. Despite this, prices are still below the peaks seen in 2021/22, and European storage levels remain high, which should help alleviate worries about the economic impact on the Eurozone.”
Looking at the technical analysis, Osborne states, “The Euro is currently consolidating within a range after a sharp decline in the US Dollar last week. Short-term trends are flat with weak momentum. The EUR experienced a solid bullish gain last week, and any minor declines are likely to find support around the 1.0850/75 range. Key resistance levels to watch out for are at 1.0950 and 1.10.”
Expert Analysis and Insights
As the world’s leading investment manager and financial market journalist, it is crucial to stay updated on the latest market trends and developments. The current situation with European natural gas prices and geopolitical tensions between Ukraine and Russia can have a significant impact on currency markets, particularly the EUR/USD pair.
Investors and traders should closely monitor the 1.0950 resistance level in the EUR/USD pair, as a breakthrough could signal further bullish momentum for the Euro. However, it is important to consider the broader economic implications of these events and how they could potentially affect your investment decisions.
By staying informed and analyzing expert opinions like those of Shaun Osborne, investors can make more informed decisions and navigate the complex world of financial markets with confidence.