Solid News

The Euro is Updating Record Lows

8/23/2022 2:59 PM

The European currency shows a mixed dynamics of trading, consolidating in the area of new record lows.

The day before, the EUR/USD pair dropped significantly, continuing the development of the downtrend formed last week, and now it is again trying to consolidate below 1.0000 and update the lows over the past 20 years. The reason for the further development of the downtrend is the strengthening of the US currency, as experts are confident in the possibility of continuing a tight monetary policy by the US Federal Reserve, since the increase in interest rates has already led to a decrease in inflation, and the national economy is showing stability.

The European Central Bank (ECB) also plans to tighten monetary conditions, despite the fact that the risks of a winter recession in Germany are only increasing. Another worrying factor for the euro is energy prices, which could provoke a full-fledged crisis in Europe. At the end of last week, representatives of PJSC Gazprom, the main supplier of natural gas from Russia to the EU, announced that the company would suspend supplies through the existing pipeline for 3 days at the end of August, explaining this by the need for preventive maintenance on the only remaining turbine. The Russian Federation is still reluctant to restore the full operation of the Nord Stream gas pipeline, despite concessions from Germany on the issue of returning the turbine from repair.

Today, investors are waiting for the publication of a block of statistics from the euro area on the level of business activity in August.


Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is expanding but it fails to conform to the surge of "bearish" activity at the moment. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic, having reached its lows, reversed into the horizontal plane, indicating risks of oversold euro in the ultra-short term.

Resistance levels: 0.9950, 1.0000, 1.0050, 1.0100. | Support levels: 0.9900, 0.9850, 0.9800, 0.9750.




Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742


Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, CuraƧao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2022 SolidECN.com