Euro sinks as risk aversion dominates the market.
“The pair losses its grip, its lowest level in 4 years.”
Risk aversion continues to take the lead, pushing Euro to its lowest level since January 2018. Geopolitical tension remains at the forefront as European economy may suffer the most from Russia-Ukraine crisis. Recently, European Union has proposed a comprehensive embargo on Russia, hoping to stop importing oil from the country by the end of the year. However, economists fear the action may jeopardize Europe’s economy as the bloc imports most of their oil from Russia. Due to rising divergence in terms of economic conditions, investors shifted their focus towards the US after Federal Reserve delivered their hawkish tilts during last policy meeting.
Quick recap on EURUSD
The pair remains pressured, extending its overall downtrend following prior brief recovery near the resistance of 1.0624.
EURUSD Weekly Technical Analysis
EURUSD slumped further down, breaching several support levels after loosing its footing at the strong support near 1.1188.
EURUSD Daily Technical Analysis
ORDER: SELL STOP
STOP LOSS: 1.0520
Target 1: 1.0200
Target 2: 1.0130
ZFX Analyst’s Comment
Recently the pair as exerted its continuous weakness, breaching several key support levels since early this year. As bears picks up, the pair is seemingly geared towards the downside in mid to long-term. A meaningful close below the upcoming support level would provide confirmation for an extension on its losses.
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