EURUSD fell below parity, more room for further losses?
“Euro tumbled sharply as recession fear rises due to pipeline cut.”
Euro breaches parity against the US dollar, hitting its lowest level since December 2002. According to reports, Russian energy giant Gazprom announced that they will drastically reduce gas supplies to EU due to maintenance. They expect Nord Steam 1 pipeline will cut daily production to 20%, half of the current level of supply. Traders fear that such move would push EU to the brink of recession as energy price is expected to climb.
Quick recap of EURUSD
The pair remains traded within a descending channel following prior retracement from the top level.
EURUSD Weekly Technical Analysis
From weekly perspective, recent price action suggests further downside as it breaches previous low level. We can also observe significant build up in bearish momentum from MACD.
EURUSD Daily Technical Analysis
From daily perspective, we expect the pair to extend its losses with its nearest support at 0.9865.
ORDER: SELL STOP
STOP LOSS: 0.9930
Target 1: 0.9720
Target 2: 0.9660
ZFX Analyst’s Comment
The pair has ample amount of room to extend its losses as it continues to trade within the descending channel. A break below 0.9865 is required to attain confirmation towards bearish bias.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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