EURUSD at 2 decades low as crisis looms.
“Rising energy cost in Europe poses great threat towards its economic outlook.”
Euro plunged towards 20-years low against the greenback as Europe’s energy crisis casts a bleak shadow over its economic outlook. German Chancellor Olaf Scholz urged for a swift transition towards green energy to counter Russia’s move of using commodity as a political weapon. With energy crisis brewing in Europe, the single economic bloc may face higher energy cost soon. Although European Central Bank signaled to control inflation by tightening their monetary policy soon, economists feared that it may not be sufficient.
Quick recap on EURUSD
EURUSD remains tilted towards the downside as it continues to trade within a descending channel.
EURUSD Weekly Technical Analysis
From weekly perspective, MACD portrays increasing bearish momentum, an imminent signal towards further downside.
EURUSD Daily Technical Analysis
From daily perspective, the pair extended its losses after successfully breaching the strong support at 1.0381.
ORDER: SELL STOP
STOP LOSS: 1.0180
Target 1: 1.0060
Target 2: 1.0000
ZFX Analyst’s Comment
EURUSD is expected to extend its losses in mid-term due to prominent bearish signal in both weekly and daily chart.
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