EUR/USD, GBP/USD and USD/RUB at the beginning of the week

EUR/USD Chart Analysis

During the trading session in Asia, the euro weakened against the US dollar. The yield on ten-year US bonds reached 2.5%. The war in Ukraine and the application of tough sanctions against Russia have different consequences for the economies of the United States and Europe. They are extremely difficult for Europe. The European Central Bank recognizes this and does not intend to raise the base interest rate in the foreseeable future. Since the start of trading, the euro has fallen 0.02% to $1.09750. At the beginning of the European session, the EURUSD pair found support at 1.09500, and now we are seeing a slight recovery. The pair is still testing the 1.10000 level and we need a break above 1.10500 to get support. The MA20 and MA50 moving averages provide additional support. The next potential resistance level is at 1.11000 with resistance in the form of the MA200 moving average. For a bearish option, we need a continuation of negative consolidation and a price pullback to 1.09000. And if this support does not last, then we will look for the next support at this year’s low of 1.08000.

GBP/USD Chart Analysis

During the Asian session, the British pound weakened against the US dollar. Rapid inflation and a tense geopolitical situation in the world threaten the economic growth of the UK, as emphasized by the Bank of England in its official statement earlier this month. The pound sterling is down 0.20% since the start of the session and is trading at $1.31530. The current resistance is at 1.32000 and the pair has fallen below the MA20 and MA50 moving averages, indicating that the bearish pressure is increasing. The rate of the pair is gradually entering the last week’s consolidation zone in the range of 1.31000-1.32000. If the bearish pressure continues, we are likely to see a break below the 1.31000 support zone, with the next potential support at the psychological 1.30000 and this year’s low. We need a break above the upper resistance line and 1.33000 for a potential bullish trend. Additional resistance to this level is the moving average MA200. And further positive consolidation may lead to the next March high zone 1.33500-1.34000.

USD/RUB chart analysis

The USDRUB pair continues to consolidate in the range from 90,000 to 100,000. We are literally sitting on the MA200 moving average and expect to see a lower breakout or bullish momentum soon to take this pair above 110,000. Even the moving averages are holding around 100,000. For a bullish option, we need positive consolidation above 105,000 and above the moving averages. This will certainly reinforce bullish optimism and provide incentive to continue moving towards the previous high. For the downward dynamics, we need a negative consolidation, which will break below the MA200 and lower the rate to the area around 90,000. After that, we can expect increased bearish pressure and further weakening of the dollar against the Russian ruble.

Market Review

The Bank of Japan offered to buy an unlimited amount of 10-year Japanese government bonds after yields rose to the upper end of the target range.

In a statement released on Monday, the central bank said it would buy an unlimited number of ten-year bonds at 0.25% for three consecutive days starting March 29.

Earlier, on February 14, the central bank conducted unlimited purchases of bonds at a rate of 0.25%.

Despite the bank’s intervention, government bond yields continued to rise in comparison to the aggressive stance of the US Federal Reserve.