EUR/USD Forecast: Euro needs to clear 1.1350 to extend recovery.

EUR/USD has regained its traction after dropping below 1.1300 on Monday.

Improving market mood is helping the shared currency find demand.Russian troops are reportedly returning to their permanent deployment points.EUR/USD has gathered bullish momentum early Tuesday and climbed toward mid-1.1300s with risk flows returning to markets. The pair needs to clear the near-term resistance that seems to have formed at 1.1350 in order to extend its rebound.

EUR/USD Technical Analysis..EUR/USD was last seen trading slightly below the 1.1350 resistance, where the Fibonacci 38.2% retracement of the latest uptrend and the 200-period SMA on the four-hour chart meet. In case the pair rises above that level and starts using it as support, it could target 1.1400 (psychological level, Fibonacci 23.6% retracement).

On the downside, 1.1320 (100-period SMA) aligns as the first support level before 1.1300 (psychological level, Fibonacci 50% retracement) and 1.1260 (Fibonacci 61.8% retracement).Meanwhile, the Relative Strength Index (RSI) indicator has rebounded to 50, suggesting that sellers are struggling to remain in control of the pair’s action.

EUR/USD holds gains above 1.1300 despite disruptive Russian headlines.EUR/USD holds gains above 1.1300 despite disruptive Russian headlines.EUR/USD is stabilizing above 1.1300, despite Russian invasion angst and weakness in global equities. Reports of fresh arrival of war troops, machines near the Ukraine-Russia border escalate risk-aversion. German ZEW, EZ GDP awaiited. 

EUR/USD News..GBP/USD clings to modest daily gains above 1.3500 after UK data.GBP/USD clings to modest daily gains above 1.3500 after UK data.GBP/USD continues to move sideways above 1.3500 during the European trading hours on Tuesday as investors await geopolitical developments. The data from the UK showed that the ILO Unemployment Rate remained unchanged at 4.1% in three months to December as expected. 

GBP/USD News ….EUR/USD holds gains above 1.1300 despite disruptive Russian headlines.EUR/USD is stabilizing above 1.1300, despite Russian invasion angst and weakness in global equities. Reports of fresh arrival of war troops, machines near the Ukraine-Russia border escalate risk-aversion. German ZEW, EZ GDP awaiited.