Forex, News, Price Analysis

EUR/USD Price Prediction: Euro Stretches Downside

Tuesday’s trading sessions saw the Euro declining again, flirting with the $0.99 mark.

EUR/USD Technical Analysis

Tuesday’s sessions saw the Euro falling hard again, with the currency dropping towards $0.99. meanwhile, the pair seems primed for plummets to $0.98 and below. Meanwhile, analysts see the dip as an advantage to scoop cheap USDs. Market players interested in such a move may capitalize on any exhaustion signals after a near-term rally.

Meanwhile, this week’s talk by central bankers (at Jackson Hole Symposium) will trigger massive volatility within the marketplace, with traders beginning to accept the narrative that the Fed Reserve will likely maintain high hawkishness in the next rate hike. That will see more cash into the USD. Thus, the Euro could have much to go after.

Meanwhile, a significant rally isn’t enough until a break past the 1.05-mark showcase. Initial exhaustion signals will likely trigger another selling unless a fundamental change at the Fed, energy sector, or ECB. None of these favors the Euro at the moment. And that might take some time.

That will likely welcome the case whether investors fade rallies moving forward amid the initial trouble signals and potential sell breakdowns. Nevertheless, we could be somewhat overdone at the moment. Also, investors might consider selling EUR against other pairs, like the Canadian dollar and Swiss franc, which are flouring within this atmosphere.

Euro Below Parity

Meanwhile, the Euro has declined beneath parity against the USD, falling to the lowest zone in two decades. The slide emphasizes the threats in the European nations utilizing the currency while battling the energy crisis following the Russia-Ukraine conflicts.

What EUR-USD Parity Means

It means the American and European currencies are worth the same. Meanwhile, constant changes saw the Euro losing the $1 mark this week. Currency’s exchange rate slump can reflect economic prospects, and Europe has stared at fades on this front. Economic rebound expectations after overcoming the COVID pandemic have met recession forecasts.

Nevertheless, the blame goes to record high inflation and increased energy prices. Europe highly relies on Russian natural gas and oil that the United States to generate electricity and keep industries humming. Worries that the Ukraine war would reduce Russian energy on the markets have surged oil prices. The woes might continue considering these factors.

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