EUR/USD is in grave danger of a drop to 1.0000 as fundamental and technical factors combine to issue bearish signals.

The euro slumped to a two-decade low on Tuesday as the latest surge in European gas prices added to worries about a recession, while there was no stopping the dollar as U.S. Treasury yields staged a rebound. nL1N2YM0IJ

FX options charge a premium for strikes in the direction deemed most vulnerable.
One-month risk reversals shows an increased premium for EUR puts over calls.
The increasing cost of insuring EUR/USD's downside highlights the darkening mood hanging over this market.
Traders should watch this measure for signs of further worsening sentiment in the options market.

EUR/USD has collapsed under the 2022 1.0349 and 2017 1.0340 (EBS) lows, weakening the underlying market structure.
Fourteen-week momentum is negative, highlighting the underlying bearish market structure.
Parity beckons for this currency pair in the days and weeks ahead.

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