EUR/USD Forecast: Bearish breakout pointing to a test of parity
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UNLOCK OFFEREUR/USD Current Price: 1.0289
- Growth across the EU slowed to a 16-month low in June, according to S&P Global.
- Wall Street plummets ahead of the opening amid lingering recession fears.
- EUR/USD trades at its lowest in 20 years and heads towards parity.
The EUR/USD pair fell to 1.0279, its lowest since December 2002. The American dollar ran as stocks plunged, reflecting market concerns. S&P Global released the final versions of the EU June PMIs, which showed that growth across the EU slowed to a 16-month low. Services activity increased at a weaker rate, whilst goods production fell for the first time in two years. The data exacerbated recession fears, while inflation in the Union stands at record highs.
Meanwhile, German Economy Minister Robert Habeck noted that the energy industry crisis could have a domino effect on the market. He did not rule out intervening gas prices. Since Russia curbed its gas flows to the country, Germany fears a complete blackout of Moscow’s provision, as Russia will temporarily shut down the Nord Stream-1 pipeline on July 11 for annual maintenance.
Ahead of the US opening, Wall Street futures are sharply down, dragged by substantial losses in its overseas counterparts. Government bond yields, on the other hand, ease as investors rush to safety. The yield on the 10-year Treasury note is currently hovering at around 2.85%.
EUR/USD short-term technical outlook
The EUR/USD pair trades below the 1.0300 threshold and the bearish breakout of the 1.0330/40 support area anticipates further declines ahead, with parity now in sight. Technically, the daily chart reflects strong selling interest, as the pair holds near the mentioned low while far below all of its moving averages. Technical indicators, in the meantime, accelerated south, maintaining their firmly bearish slopes within negative levels.
The 4-hour chart shows that technical indicators remain at daily lows, partially losing their bearish momentum. The RSI keeps heading south, despite being at 26, hinting at a current pause ahead of another leg south. Furthermore, the pair collapsed after repeatedly failing to overcome a bearish 20 SMA, another hint for a bearish continuation.
Support levels: 1.0260 1.0215 1.0170
Resistance levels: 1.0335 1.0380 1.0425
EUR/USD Current Price: 1.0289
- Growth across the EU slowed to a 16-month low in June, according to S&P Global.
- Wall Street plummets ahead of the opening amid lingering recession fears.
- EUR/USD trades at its lowest in 20 years and heads towards parity.
The EUR/USD pair fell to 1.0279, its lowest since December 2002. The American dollar ran as stocks plunged, reflecting market concerns. S&P Global released the final versions of the EU June PMIs, which showed that growth across the EU slowed to a 16-month low. Services activity increased at a weaker rate, whilst goods production fell for the first time in two years. The data exacerbated recession fears, while inflation in the Union stands at record highs.
Meanwhile, German Economy Minister Robert Habeck noted that the energy industry crisis could have a domino effect on the market. He did not rule out intervening gas prices. Since Russia curbed its gas flows to the country, Germany fears a complete blackout of Moscow’s provision, as Russia will temporarily shut down the Nord Stream-1 pipeline on July 11 for annual maintenance.
Ahead of the US opening, Wall Street futures are sharply down, dragged by substantial losses in its overseas counterparts. Government bond yields, on the other hand, ease as investors rush to safety. The yield on the 10-year Treasury note is currently hovering at around 2.85%.
EUR/USD short-term technical outlook
The EUR/USD pair trades below the 1.0300 threshold and the bearish breakout of the 1.0330/40 support area anticipates further declines ahead, with parity now in sight. Technically, the daily chart reflects strong selling interest, as the pair holds near the mentioned low while far below all of its moving averages. Technical indicators, in the meantime, accelerated south, maintaining their firmly bearish slopes within negative levels.
The 4-hour chart shows that technical indicators remain at daily lows, partially losing their bearish momentum. The RSI keeps heading south, despite being at 26, hinting at a current pause ahead of another leg south. Furthermore, the pair collapsed after repeatedly failing to overcome a bearish 20 SMA, another hint for a bearish continuation.
Support levels: 1.0260 1.0215 1.0170
Resistance levels: 1.0335 1.0380 1.0425
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