In the midst of gloomy market environment and investors continued concern over the Fed’s aggressive rate hikes in the face of escalating global recessionary fears, USD is seeing renewed demand. In this regard, the pair’s recovery was halted.
The pair attempts to go higher, however, are still constrained by the escalating European energy crisis and looming Russia-Ukraine tensions. The Baltic Sea gas pipeline system’s large leak, which was discovered last week was a premeditated act according to US President Joe Biden.
The fall in US Treasury yields limits the downside of the pair. Eyes on the Eurozone and US Manufacturing PMI for its next directional move.
On the hourly scale, support is seen at 0.9730 followed by 0.9680. A break below this level will drag prices towards its next support at 0.9630.
On the flip side, 0.9850 acts as the immediate resistance. A break above 0.9900 will unleash further upside towards 0.995 as its next possible target.