Euro edges higher, but focus still on Ukraine

EUR/TRY

EUR/TRY is trading up 0.50% at 15.6775

The euro edged higher against the dollar on Wednesday with investors bracing for further developments in the Ukrainian crisis after Western countries announced sanctions against Russia for ordering troops into separatist regions.

Satellite imagery over the past 24 hours shows several new troop and equipment deployments in western Russia and more than 100 vehicles at a small airfield in southern Belarus, which borders Ukraine, according to U.S. firm Maxar.

“The short-term movement in all currency pairs is mainly driven by the escalation levels,” Moritz Paysen, forex and rates adviser at Berenberg, said.

“Surprisingly, the euro remained stable against the USD despite the risk-off movement, but we assume that this will not be the case for much longer and that the euro will then lose ground accordingly,” he added.

The single currency staged a slight rebound on Tuesday when it approached its lowest since Feb. 3, the day when the European Central Bank’s hawkish shift boosted its exchange rate.

But some analysts expect the Ukrainian crisis to affect ECB’s decisions at its policy meeting next month.

On technical fronts EUR/TRY RSI stood at 63.30 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : EUR/TRY – BUY: 15.6781, TARGET: 15.7465, STOP LOSS : 15.6379

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