Euro may tumble as risk aversion returns.
“EU leaders agree to ban 90% of Russian oil by year end.”
Risk aversion began to pick up during Asian trading session as economic conundrum emerges in the European Union. According to reports, EU leaders have agreed to ban oil imports from Russia. The move is enforced to cut off revenues from oil sales that may be channelled towards war in Ukraine. The embargo covers oil and petroleum products although it excludes oil that is being delivered from Russia via pipeline. Nonetheless, the announcement raised concerns among investors as it may exert economic pressure upon EU.
Quick recap on EURJPY
The pair remains traded within a downward channel while currently testing near the top level.
EURJPY Weekly Technical Analysis
In weekly chart, while the pair is skewed towards the upside, mid-term trending may suggest otherwise.
EURJPY Daily Technical Analysis
From daily perspective, the pair is currently testing at the top of downward channel, nearby recent selling pressure region that could be observed during early May.
ORDER: SELL STOP
STOP LOSS: 137.60
Target 1: 134.60
Target 2: 134.00
ZFX Analyst’s Comment
For the time being, shorter time frame shows substantial bearish pressure from the upside, implying possible pullback. Likewise, it is currently testing near previous selloff region, which may provide additional pressure if bears persist to take over.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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