Markets flip risk-off as Ukraine's President Zelensky cites 16 Feb. as day of Russia attack

Ross J Burland FXStreet

Ukraine's President Zelensky said that the Ukraine “has been informed” that Wednesday, February 16 “will be the day of the attack”, according to comments attributed to Zelensky accompanying a Facebook update to the nation.

He does not say who or what agency provided the information.

Nevertheless, the market is paying attention to each and every update. The 16th was a date US President Joe Biden told Western leaders about last week as a potential time when Russia will start a physical assault on Ukraine.

In an update, Russia has moved some long-range artillery and rocket launchers into firing position, threatening Ukraine, according to a US official. A bumper-to-bumper formation is seen in satellite photos — and are beginning to move into "attack positions," according to the official who said that the US believes Russia will attack Ukraine by the end of the week, although it's not yet certain what form it will take, the official said.

The US benchmarks are printing fresh lows with the S&P 500 now moving to 4,371 the low while AIUD/JPY drops from the corrective highs and challenges what may otherwise have been regarded as the formation of an inverse head and shoulders:

AUD/JPY technical analysis, H1 chart

As for the forex market's risk barometer, AUD/JPY, the price is breaking the right-hand shoulder to the downside and finding so, invalidates the inverse head and shoulders, putting the focus on the downside once again. 81.11 could become a strong level of resistance on a retest with 81.66 the next level of potential support.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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