As Russia-Ukraine war clouds continue to hang over markets, it is tough to see the euro gather much reprieve at the moment. Even talk of more sanctions against Russian oil is just more bad news for Europe. For some context, the region sees roughly 30% of oil and 39% of gas supplies from Russia itself. Go figure.
But for the case of the euro, the drop is also compounded by the awful-looking technical outlook at the moment. I can only see the ECB as being a source of comfort for the single currency this week.
Here's a look at EUR/USD:
The drop below 1.1100 continues to deepen with the break of support around 1.1000 and 1.1040 exacerbating the downside move at the moment. It's hard to point to any relief besides some psychological support around 1.0800 and then key support closer to the 2020 lows around 1.0635.
The euro is pretty much a falling knife at the moment that even the SNB is staying away from it:
Yup, EUR/CHF hit parity for the first time since the SNB fiasco in 2015 and the drop in the past week has been a rather sharp one. I love a good dip-buying opportunity but for now, it's tough to pick at levels to step in for the euro.
Elsewhere, EUR/GBP and EUR/JPY are also looking rather dismal as key support levels give way:
EUR/GBP is extending a decline below 0.8300 with little standing in the way of a potential shove towards 0.8000.
Meanwhile, EUR/JPY is also taking a peek below its 200-day moving average @ 125.47 and is eyeing the 50.0 retracement level next @ 124.26.
