Even with the Russia’s attack on Ukraine increasing market volatility, the Euro continues to trade within a range against the US Dollar. A breakout to the downside may open the door to restarting the downtrend that preceded the chart formation.
Given growing events in Ukraine, investors should treat key breakouts in the Euro with a grain of salt. Over the weekend, the Euro gapped significantly lower before trimming losses by the end of Monday’s trading session. According to Bloomberg, EUR/USD one-week implied volatility sits at 10.025, the most since November 2020. This is something traders ought to consider as the situation matures.
Looking forward, all the EU Manufacturing PMI’s will be released but also the German and Italian CPI. Later on the US will release their ISM Manufacturing PMI.
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