FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik comments on today's EUR/USD moves, with risk once on and then off again and then back on due to the contradicting news coming from different sources on the Russian-Ukrainian ceasefire deal.
"Early news of a permanent ceasefire between Ukraine and Russia triggering a relief rally among high yielders and pushing EUR/USD up to 1.3550."
"But the news was denied around 30 minutes later, as Putin spokesman denied the cease fire, but a few minutes afterwards it said that Russian President does back the idea of a immediate ceasefire in Ukraine."
"The EUR/USD retraced down to current 1.3140 area, measly 20 pips above pre news levels, with the hourly chart showing price struggling around a bearish 20 SMA and momentum crossing its midline to the upside."
"Chances of a stronger upward move seem limited with all the back and forth in the geopolitical news, and ahead of ECB economic policy decision on Thursday, yet an upward acceleration above mentioned daily high could see price approaching the 1.3190/1.3200 price zone."
"On the other hand, the downside remains protected by the static support at 1.3105, September 2013 monthly low, and it will take a clear break below it to see a bearish extension towards 1.3050/60 price zone.