Following a brief consolidation phase, EUR/USD came under strong bearish pressure during the European trading hours and dropped below 1.0200 for the first time since December 2002.

The pair is already down nearly 3% since the beginning of July. Investors grow increasingly concerned over the energy crisis causing the European economy to tip into recession before the end of the year. Earlier in the day, the data published by Eurostat revealed that Retail Sales in May rose by 0.2% on a monthly basis, missing the market expectation for an increase of 0.4%. 

Although risk flows seem to have returned on Wednesday with Norway's government intervening to stop the strikes in the energy sector, the shared currency is having a difficult time finding demand. 

Later in the day, the ISM Services PMI report from the US will be looked upon for fresh impetus. Later in the day, the US Federal Reserve will release the minutes of the FOMC's June policy meeting.

EUR/USD four-hour chart