🔽 EURUSD drops below 2016/2017 lows and reaches lowest level since August 2003
A recent hawkish shift in ECB's narrative was not enough for the euro to regain investors' confidence. Signaling that rate hikes are coming at the next meetings provide only a brief relief for the common currency. There are some concerns that ECB attempts to prevent fragmentation of bond markets will dilute any hawkish moves. A drop on EUR market was resumed after a short pause and the pair broke below lows from the first half of May, following a strong, downward move this morning. The move not only pushed the pair below May's lows but also below lows from the turn of 2016 and 2017, meaning that EURUSD traded at the lowest level since August 2003!
Taking a look at EURUSD at the H4 interval from a technical point of view, we can see that the pair broke below a key short-term price zone at 1.0360, marked with lows from May 2022 and the turn of 2016 and 2017. If current downbeat sentiment prevails, a move towards levels marked with exterior retracements of recent upward correction cannot be ruled out. Those retracements can be found at 1.0290 and 1.0220.
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Source: xStation5
