After undergoing a very strong trading session last night due to a slew of positive economic reports, the euro has now come under selling pressure. Due to Russian turmoil, a number of investors are buying safe haven currencies such as the dollar and the Swiss franc while getting rid of their euros.
The Russian rouble touched a multi-year high of 72.87 against the dollar in the trading session today before going back below the 70 mark. Analysts are worried that the Russian economy will soon introduce capital control measures as potential defaults becomes more apparent.
Investors should get ready for today’s upcoming FOMC Minutes Meeting scheduled for the latter half of the trading session. A number of analysts believe the Federal Reserve will adopt a hawkish standing and announce or at least indicate that a rate hike is imminent. This development will certainly have a direct impact on the EUR/USD. If the Fed will soon enact a rate hike the greenback will skyrocket especially against the euro.
When looking at the hourly chart for the EUR/USD, the currency pair is continuing to face resistance at the $1.25445 level and is currently trading below its important daily moving average, which is undoubtedly a bearish sign. Additionally, its momentum indicators and relative strength index are supplying fresh sell signals, highlighting a shift towards the sell side.
Short the EUR/USD at current levels for an intermediate target at $1.24300, with a strict stop-loss above $1.24910.