EUR/USD remains close to a key technical level, the 1.0340 multi-year low. A break under this level would pave the way for another leg lower, economists at ING report.

EUR/USD at risk of a break below the 1.0340 support

“A break below 1.0340 would likely pave the way for another leg lower and make parity quite a tangible possibility.”

“We are marginally inclined to think the euro will be able to hold above 1.0340 this week, given quite a lot of short-term negatives are now in the price, and possibly climb back to the 1.0500 gravity line. This scenario, however, heavily relies on some stabilisation in global risk sentiment.”

“Today, EU’s foreign ministers will meet to further discuss an EU-wide ban on Russian oil. The oil ban is mostly priced into the euro already and we doubt an official announcement this week would generate a dramatic drop in the currency.”