In a very ominous sign, a three black crows candlestick pattern has formed on the EUR/USD daily chart -- three large black candles in a row -- highlighting the increasing dominance of bears over this market and an increased likelihood of further losses.
It is plausible that EUR/USD could collapse to parity, a level FX markets have not seen since way back in December 2002.
Especially as the European Central Bank is behind other major central banks, which are already well along the rate-hike path, putting further downward pressure on a weakened EUR/USD. nL8N2XW4QZ
The continued reduction in speculative U.S. dollar longs is providing further room for even bigger greenback gains in the weeks ahead, which in turn weighs on EUR/USD. nL1N2Y00HN
If EUR/USD were to sustain a break below the 2022 1.0349 and 2017 1.0340 lows, that would increase the odds of an even bigger EUR/USD slide to probe 1.0000.
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