Dollar Edges Lower; Risk Sentiment Boosted by Potential Ukraine Summit

Dollar Edges Lower; Risk Sentiment Boosted by Potential Ukraine Summit

Forex Trading Ideas

EUR/USD is trading up 0.25% at 1.1346

The U.S. dollar weakened in early European trade Monday as risk sentiment received support from the news of a likely meeting between U.S. President Joe Biden and Russian President Vladimir Putin to discuss the fraught situation on the Ukrainian border.

At 2:45 AM ET (0745 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% lower at 95.745.

News of the potential summit came from the office of French President Emmanuel Macron, who had proposed the idea to the two leaders. The White House said in a statement that Biden had accepted the meeting “in principle” but only “if an invasion hasn’t happened”, while the Kremlin was silent on the matter.

The dollar had been one of the main beneficiaries last week of the heightened tensions on the Ukrainian border, with Russia massing troops and also undertaking military exercises in neighbouring Belarus while Ukrainian forces and Russia-backed rebels exchanged accusations of violence in the east of the country.

EUR/USD rose 0.5% to 1.1373, with the euro boosted by the potential of diplomacy winning the day. USD/JPY fell 0.1% to 114.96, giving up early gains, while the risk sensitive AUD/USD rose 0.6% to 0.7217.

The Russian rubble, which has been sensitive to the prospect of war, strengthened, with USD/RUB down 0.9% at 76.6073.

On technical fronts EUR/USD RSI stood at 33.59 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : EUR/USD – SELL: 1.13459, TARGET: 1.13307, STOP LOSS : 1.13646

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