EURUSD tumbles lower as energy crisis detonates.
“Parity is long gone; Euro may succumb to further losses against the US dollar.”
Euro further below the parity level against the greenback as recent energy crisis struck gloomy expectation towards EU’s economy. Last Saturday, Russia forewent its deadline to resume the operation of Nord Stream pipeline, citing an oil leak in one of the turbines. Seizure of gas supply to Europe sparks concerns over rising energy prices which may directly impact EU’s recovery from the pandemic.
Quick recap on EURUSD
The pairs remain traded within a descending channel as it failed to extend its recovery.
EURUSD Weekly Technical Analysis
From weekly perspective, the pair is expected to extend its downtrend due to recent price action. This is also evident from the signal provided by MACD.
EURUSD Daily Technical Analysis
With the pretext from weekly perspective, daily perspective shows further possibility for an extended downside. However, we will require a close below the nearest support to attain confirmation.
ORDER: SELL STOP
STOP LOSS: 0.9930
Target 1: 0.9730
Target 2: 0.9670
ZFX Analyst’s Comment
The pair is expected to foray lower due to recent close below the parity level. We expect bears to push forward soon after a confirmatory close has been obtained.
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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