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  • EUR/USD breaks the 1.0600 mark, eying fresh multi-year lows.
  • The tussle with Russia is denting the risk sentiment, weighing on the risk assets.
  • ECB speech and risk-related headlines are key to watch.

The EUR/USD price has drifted below the 1.0600 mark for the first time since 2017. The pair remains under pressure as the flows to safe-haven continue. So, the bears are likely to keep their dominance below the 1.0600 area.

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Russian aggression causing risk aversion

On Tuesday, the news came that Russia stopped the gas exports to Poland and Bulgaria as they refused to pay in Russian rubles.

The president of the European Commission, Ursula von der Leyen, called it unjust and unacceptable to halt the gas supply to customers with a unilateral decision. Meanwhile, a Russian member of the parliament, Vyacheslav Volodin, urged the Russian government to halt the gas supply to non-friendly countries.

On the other hand, German Minister for Economic Affairs, Robert Habeck, said on Tuesday that they were eager to find an alternative to the Russian oil as the EU decided to cease the imports of Russian energies.

Stocks plunging

The Euro Stoxx 600 index plunged on Wednesday as it started the day in a negative zone before posting a meaningful recovery on the day. On the other hand, the US stock index futures are positive at around 0.50% on the day.

However, the investors are not interested in betting on the risk rallies. The geopolitical tensions remain strong while the renewed fears of global economic slowdown bar the EUR/USD from finding any meaningful recovery.

What’s next to watch for EUR/USD price?

The ECB president Christine Lagarde is due to speak later on the day. Meanwhile, the US economic docket has pending home sales and trade balance data on the day. But the risk sentiment will remain the key element to watch.

EUR/USD price technical analysis: Bears may hit 1.0460

eur/usd price

The EUR/USD price has broken the 1.0600 level with a very high volume. The pair is now trying to recover, but the recovery remains shallow as long as the price remains below the 1.0800 mark. The overall volume data shows strong downside potential for the pair. We may see 2015 lows of 1.0460 to be tested sooner or later.

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The 4-hour chart reveals that the key SMAs are pointing to the downside. The 20, 50, 100 and 200 SMAs lie above one another, indicating a strong bearish outlook.

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