The pair will likely keep rising ahead of the important economic data from Europe and the United States.
Buy the EUR/USD pair and set a take-profit at 1.1235.Add a stop-loss at 1.100.Timeline: 1-2 days.
Set a sell-stop at 1.1050 and a take-profit at 1.100.Add a stop-loss at 1.1160.
The EUR/USD rose in the overnight session as the new round of talks between Russia and Ukraine continued in Turkey. The pair rose to a high of 1.1140, which was the highest level since March 2.
Ukraine and Russian Talks
Ukraine and Russian negotiators started the new round of talks in Turkey as they attempted to solve the ongoing crisis. This round did not lead to material progress even though the two sides said they were constructive.
Ukraine outlined its proposals for accepting neutral status, which will include security guarantees from the US and other EU countries. At the same time, the Russian Deputy Defense Minister said that the country’s military will reduce its activities around Kyiv and Chernihiv.
He said that the goal will be to increase trust during negotiations. Still, analysts believe that the reason is that the Russian military has faced stiff opposition from the Ukrainian military.
The EUR/USD also rose even after Russia confirmed that it will start selling oil in rubles. The government has already asked its oil and gas companies to start accepting rubles starting from April. EU governments have insisted that they will only use euros.
There will be several events to watch on Wednesday. First, the European Commission will publish the latest services, industrial, and consumer confidence data. Expectations are that this confidence declined in March because of the situation in Ukraine. On Tuesday, data by Conference Board revealed that American consumer confidence declined slightly in March.
Another catalyst will be a statement by Christine Lagarde, the ECB president. She is expected to reiterate the caution she expressed during this month’s meeting.
Meanwhile, there will be several important economic data from the United States. ADP will release its estimate of private payrolls. Analysts expect that companies continued boosting their workforce in March. The US will also release the latest GDP and PCE data.
The EUR/USD pair made a bullish breakout on Tuesday. It managed to rise to the key resistance level at 1.1140. On the three-hour chart, this price is about 25-day and 50-day moving averages while the MACD and other oscillators have pointed upwards. It is also slightly below the second resistance of the standard pivot point.
Therefore, the pair will likely keep rising ahead of the important economic data from Europe and the United States.