• EUR/USD witnessed heavy selling on Thursday and dived to a fresh multi-year low.
• Aggressive Fed rate hike bets, the risk-off mood continued underpinning the USD.
• Concerns about the economic fallout from the Ukraine crisis weighed on the euro.

The EUR/USD pair broke down of its one-week-old trading range and slipped below mid-1.0400s, to its lowest level since January 2017 during the early part of the European session.

Despite signs that inflationary pressures in the world's biggest economy are peaking, the markets seem convinced that the Fed would tighten its monetary policy at a faster pace. This, in turn, continued acting as a tailwind for the US dollar and exerted downward pressure on the EUR/USD pair.

Apart from this, the prevalent risk-off environment - as depicted by an extended sell-off in the equity markets - further benefitted the greenback's safe-haven status. On the other hand, the shared currency was further weighed down by concerns that the European economy will suffer the most from the Ukraine crisis. 

Key levels to watch