The EURUSD has been trending lower today on the back of increased concerns about the economies in the Eurozone as well as high inflation. The combination has the potential to put the ECB in a box just as it was ready to launch rate hikes. Russia is expected to shut down the Nord Stream pipeline this week for scheduled maintenance which puts added pressure on the economies.
Traders have marked the price through the low from Friday at 1.00705 (see hourly chart below). The low price reached 1.00552 so far.
Shorter term sellers would now like to see the low from Friday at 1.00705 as close resistance intraday at least. If the sellers lean near that level, the sellers remain in full control. Buyers would need to see that level broken - and stay broken today - to give the buyers some hope. Absent that, and the sellers are winning.
What may save the pair is the parity level. That level is a natural support level that may attract buyers against the level will stops on a break simply because risk can be defined and limited against the level. A break below, and stops may/should be triggered.
