Russia might further restrict gas supply to Europe through Nord Stream 1. Germany is at risk of tipping into recession. The pair is getting closer to parity. Today’s outlook for EUR/USD is bearish as Germany faces a looming recession if Russia extends the maintenance of Nord Stream 1. The Ukraine war has caused a lot of tension between Russia and the EU, with both sides trying to have the upper hand. –Are you interested to learn more about forex options trading? Check our detailed guide- The EU is trying to strangle Russia’s revenue funding the war by imposing sanctions, while Russia is using oil and gas to exert political pressure on Europe. The Nord Stream 1 is the largest pipeline transporting Russian gas to Germany. Markets believe Russia is using this pipeline to restrict gas supply to Europe. Last month alone, Russia cut flows to 40% of the pipeline’s capacity, claiming delayed equipment return. It is therefore not a surprise that markets expect an expansion of the maintenance period. “The last few months have shown one thing: Putin knows no taboos. Therefore, a complete halt to gas supplies through the Nord Stream pipeline cannot be ruled out,” Timm Kehler, managing director of German industry association Zukunft Gas, said. Such an occurrence would tip Germany into a recession and cause many job losses. The economic effects would be felt in the whole of north-western Europe. EUR/USD key events today Today, there will be a speech from the Deutsche Bundesbank President, also a voting member of the ECB Governing Council. Nagel is known to be one of the most influential members of the council, so his speeches contain clues on monetary policy. Get FREE Forex Signals Now! EUR/USD technical outlook: Bullish divergence may fail Looking at the 4-hour chart, we see the price falling after retesting 1.0200, a critical psychological level. The price is trading below the 30-SMA, showing bears are holding the reins and have been for some time now. The RSI is trading well below 50, also favoring bearish momentum. –Are you interested to learn about forex robots? Check our detailed guide- At the same time, we can see a bullish divergence in the RSI that shows weakness in the bearish move. This divergence is likely to happen near critical levels due to profit-taking. If bears are still strong, the divergence will fail, and the price will fall further. However, if bears cannot return stronger, the divergence will play out, and bulls might take the price above the 30-SMA. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal EUR/USD Daily share Read Next Gold Price Invalidate Upside Around $1,747, Eying New Lows Olimpiu Tuns 4 weeks Russia might further restrict gas supply to Europe through Nord Stream 1. Germany is at risk of tipping into recession. The pair is getting closer to parity. Today's outlook for EUR/USD is bearish as Germany faces a looming recession if Russia extends the maintenance of Nord Stream 1. The Ukraine war has caused a lot of tension between Russia and the EU, with both sides trying to have the upper hand. -Are you interested to learn more about forex options trading? Check our detailed guide- The EU is trying to strangle Russia's revenue funding the war by imposing sanctions, while… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.