EURUSD treads water, stays below 1.14

EURUSD treads water, stays below 1.14
Volatility has been minimal so far on Wednesday, with the EURUSD pair trading flattish during the US session, last seen near 1.1365.
Sentiment regarding Russia-Ukraine tensions improved further today. "Troops in western Russia may return to their usual positions in three to four weeks," Russian Ambassador to Ireland Yury Filatov said in an interview with an Irish public broadcaster.

He continued by reemphasizing, "What I can tell you is, within maybe three to four weeks, the configuration of the forces in the Western region of Russia will resume its normal standard posture. We are conducting planned exercises with Belarusian military forces," according to the comments cited by TASS. He dismissed as "insane" the idea that Russia will attack Ukraine and occupy it.

Technically speaking, the situation on the daily chart looks a bit neutral. The 50-day moving average (purple line) has been defended, sending the euro higher yesterday. However, the pair is now testing the first more robust selling zone, 1.1370.

If that resistance is broken to the upside, we could see further gains toward the selling zone at 1.1470. So far, it looks like a double top pattern, but bearish momentum appears weak and non-existent.

Later today, the FOMC minutes from the latest Fed meeting are due, possibly inducing some market volatility. Should the 50-day average be broken down, we could see the retest of this week's lows at 1.1280.
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