Fear and uncertainty had investors readjusting allocations today as Russia invaded the Ukraine. Equities sold off initially as did the dollar. By the end of the day, equities recouped along with the dollar and both closed up for the day. We will expect to see more volatility and risk avoidance as the conflict escalates.
The EUR/USD attempted a rally today but ended up closing down again. We may not get a bigger bounce as the uncertainty with Russia and Ukraine is increasing and will likely hurt the eurozone more than other currencies. We are back to watching for price to drop to 1.28
(see EUR/USD below)
The NZD/USD similarly attempted a break higher and failed at 0.84. We are already seeing price sell off cancelling out the move earlier in the day. We will now watch for price to fall and test support near 0.8275 for a bounce.
(see NZD/USD below)
The GBP/USD rallied today and got to within 3 pips of our buy stop. We are watching for price to break above this level tomorrow and enter us into our bullish trade. We will adjust our stop when the trade triggers as we now have a support that has become more clear.
(see GBP/USD below)