17.03.2014 - Euro looks to the East

The price of euro continues to move inside the rising channel. After a sharp decline the prices reached a strong level of 1.3850, but could not overcome it and bounced up. At the moment the price is consolidating around 1.39. In case of fixing above this level, we expect growth within the channel. It is worth noting that the market expects the reaction of the Russian Federation on the results of the referendum in Crimea and accordingly sanctions by the EU and the USA. Negative development of situation will lead to a drop in the euro and local trend change to negative. Target levels in such case will be at 1.3700 and 1.3630. We maintain a long-term negative outlook for the euro.

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