• EUR/USD declined to its weakest level in seven months as higher energy prices and conflict concerns weighed on European currency .
• Europe relies heavily on imported oil and liquefied natural gas, making it especially vulnerable as prices have surged more than 25% to nearly $120 a barrel, raising concerns over supply shocks.
• An extended war may lift fuel and shipping costs further, worsening the weak growth outlook.
• European central banks faced market pressure on Monday to raise interest rates, with the ECB expected to hike by June or July.
• The French finance minister noted that G7 countries remain undecided on releasing emergency oil supplies as crude tops $119 per barrel.
• Immediate resistance is located at 1.1537( Daily high), any close above will push the pair towards 1.1587( 50%fib)
• Strong support is seen at 1.1421(23.6% fib) and break below could take the pair towards 1.1363 (Lower BB).
Recommendation: Good to buy around 1.1450, with stop loss of 1.1500 and target price of 1.1350
