Euro has come under heavy selling pressure on risk aversion. The EUR/USD pair seems to have steadied around 1.1250 for the time being but it is likely to face renewed bearish pressure unless geopolitical tensions ease, FXSTreet’s Eren Sengezer reports.

Eyes on west's response to Russia

“In case Russia takes a step back and agrees to look for a diplomatic solution, a risk rally could sweep the markets and help the shared currency gather strength. In the short-term, however, this seems very unlikely as things currently stand.”

“With a drop below 1.1200, EUR/USD could extend its slide toward 1.1140, the starting point of the early-February uptrend.”

“On the upside, 1.1260 (Fibonacci 61.8% retracement) aligns as the first technical resistance before 1.1280 (static level, former support) and 1.1300 (psychological level, Fibonacci 50% retracement), 200-period SMA).”

See: EUR/USD could slump to the 1.1120 lows amid renewed tension in Ukraine – ING