• EUR/USD collapses below the 1.0300 yardstick.
• A probable drop to parity slowly emerges on the horizon.

EUR/USD plummets to levels last seen back in December 2002 around 1.0280 on turnaround Tuesday.

Recession fears seem to dominate the sentiment around investors and keep the mood around the European currency well depressed. Against that gloomy backdrop, further losses should not be ruled out in the near term, with the next target of note at the parity level. Down from here comes the December 2002 low at 0.9859 (December 2)

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1092.

EUR/USD daily chart