Economists at Bank of America Global Research believe that the EUR/USD pair could retest 2022 closing lows around 0.98-1.00.

A bottom in Q1 would reduce the risk of retesting the 0.9800-1.00 area

“We’d be remiss to not mention that when Euro forms a bottom below 1.15 it tends to retest the monthly closing lows at least once. This means the risk of a retest of the 2022 closing lows in 1H23 still can’t be ruled out to form a bigger bottom.”

“If the new downtrend in the daily chart forms a bottom in Q1 then the risk would be reduced. We don’t have that yet. The monthly closing lows is in the 0.9800-1.00 area.”