EUR/USD advances for the second session in a row and manages to put further distance between itself and recent lows in the 1.0900 neighbourhood, against the backdrop of the relentless improvement in the risk-associated galaxy, in turn underpinned by cautious optimism surrounding the Russia-Ukraine peace talks.

The EUR/USD is in retracement mode. Risk-on is dominating the markets now as the Russia- Ukraine situation is not getting worse and negotiations are in progress. At this point I expect a breakout as you can see from my position. 

In the meantime, investors are expected to closely follow further diplomatic negotiations aimed at ending the military dispute as soon as possible, while extra attention should shift to the imminent FOMC gathering on Wednesday.

If the W H3 breaks we should see the ATR high hit - 1.1050. Buy the dips scenario is holding bears from advancing further. The final target is W H4 1.1090 for the intra-week setup. EUR/USD is trading near 1.10 and it looks to extend its rebound in case risk flows continue to dominate the financial markets. The next bullish target for the pair is located at 1.1040 ahead of 1.1080. 

In case the pair manages to hold above 1.1000 (psychological level, Fibonacci 38.2% retracement of the latest downtrend), it could target 1.1040 (Fibonacci 50% retracement) and 1.1080 (100-period SMA, Fibonacci 61.8% retracement).

On the downside, 1.0960 (50-period SMA) aligns as interim support ahead of 1.0930 (Fibonacci 23.6% retracement) and 1.0900 (psychological level, static level).

EURUSD Gains Bullish Support Above 1.0900

Mar 15 2022

Take Profit +1.77%

Holding time 15d11hr

1.09860

Entry price

1.11810

Take profit price