EUR/USD extends the downside below the parity zone.A deeper retracement could see the 2022 in the mid-0.9900s retested.
EUR/USD breaks below the parity level to clinch fresh 6-week lows at the beginning of the week.
Further losses appear in the pipeline for the time being. Against that, the pair could confront the 2022 low at 0.9952 (July 14) in case of a convincing breakdown of the parity region.In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0852.
EUR/USD daily chart
EUR/USD closes in on multi-year lows below parity
Following a short-lasting recovery phase, EUR/USD came under renewed bearish pressure and started to decline toward the multi-year low it touched at 0.9952 in July. The intense flight to safety in the American session provides a boost to the dollar and weighs on the pair.
GBP/USD extends slide below 1.1800 amid riisk aversion
With safe-haven flows continuing to dominate the financial markets in the second half of the day, GBP/USD stays under bearish pressure and trades at its lowest level since mid-July below 1.1800. The US Dollar Index is up another 0.5% following last week’s 2.3% gain.
Gold bears target $1,720 as US dollar keeps reins
Gold price remains under intense selling pressure at the start of the week, extending the previous week’s bearish momentum into the sixth straight day. The relentless demand for the safe-haven US dollar could be linked as the main underlying factor behind the latest sell-off in the bright metal.