The bears have been controlling the price of EURUSD for almost a year now. The war in Europe, for the past two months, has exacerbated the downward trajectory. Is it really the time for the EUR to attain parity with the USD?
The dollar has received relief since the start of the war in Ukraine as it is seen as a safe-haven currency. Investors who seek safety and stability for their assets have created a demand for the dollar. Consequently, giving the dollar room to breathe from the choking US inflation. The DXY has been on an aggressive rally and is currently trading at 100.700.
The EUR, however, is yet to see the worst of the ramifications of the war. From the double-edged sanctions which have affected industries in Europe to the global trade and supply chain disruptions. The European Union is also facing challenges with energy supply as they seek to isolate Russia on the global stage.
The EUR is fundamentally at a disadvantage. The technicals favor the bears. So, will the EURUSD bridge the 19-year loop back to 1.00000?
The dollar has received relief since the start of the war in Ukraine as it is seen as a safe-haven currency. Investors who seek safety and stability for their assets have created a demand for the dollar. Consequently, giving the dollar room to breathe from the choking US inflation. The DXY has been on an aggressive rally and is currently trading at 100.700.
The EUR, however, is yet to see the worst of the ramifications of the war. From the double-edged sanctions which have affected industries in Europe to the global trade and supply chain disruptions. The European Union is also facing challenges with energy supply as they seek to isolate Russia on the global stage.
The EUR is fundamentally at a disadvantage. The technicals favor the bears. So, will the EURUSD bridge the 19-year loop back to 1.00000?