USD to eur

The drop in the euro also adds to the inflation woes we must not forget. Most of the major commodities in the world are bought in U.S. dollars and the fact that ...

Ahead of this, the green line at 0.9548 could be sticky as it was back in the early 2000s. This new wave of lower highs and lower lows looks like it has legs and the green and black support areas could be targeted once more. The biggest level of support is in fact at 0.83710 and this price zone has had the biggest reaction on the chart. Although the U.S. has a similar problem recent economic indicators show that the economy in America could handle rate increases better than some of the other major nations. Below is the monthly chart of EUR/USD. It is being used to highlight we have been in this situation before. One thing is for sure it looks like happening in Europe before the U.S. right now.

The euro came within a whisker of parity against the US dollar before suddenly bouncing back, a sign of just how important the level is to traders.

The euro was last worth the same as the dollar in December 2002, shortly after the currency, now used by 19 European countries, was established.

The last time the euro was worth the same as the dollar was in December 2002, not long after the currency was introduced in 1999. This week, fears that a crucial natural gas pipeline from Russia to Germany, which went offline on Monday for 10 days of scheduled maintenance, could remain shut down for longer have hit the euro hard. The euro, which is shared by 19 European countries, has recently come under pressure, like many other currencies against the dollar, losing more than 10 percent of its value this year.

The Euro put in a test at parity earlier this morning and that's led to a bounce. Tomorrow brings CPI data out of the US and earnings season follows next ...

This is a major signal of just how bearish markets are on the Euro and, again, this roots back to central bank policy: The Swiss National Bank is hiking rates but the ECB is not, thereby allowing for a fundamental divergence to build in the pair. But, perhaps more disconcerting for the rest of the world – the more that the Euro sinks, the more inflationary pressure is on the horizon as imports are going to be more expensive on a relative basis. I had looked into this one last week but, the takeaway was the fact that EUR/CHF hasn’t really held below parity for very long. And given the increasing rate differential in the EUR/USD pair, prices have been falling through the floor as driven by rates. The bigger question on EUR/USD, however, is whether the ECB is getting near any changes in their policy outlay. On the below chart, we can see a 70 pip bounce after that parity test earlier this morning, with EUR/USD prices coming very close to the Fibonacci level that had previously helped to set the low. There’s a double top with a neckline at 137.81 that’s already been breached, which keeps the door open for bearish themes in the pair. The following week brings the FOMC’s July rate decision and, at this point, the bank is expected to hike by another 75 basis points with another 50 on the way in September. The Euro is vulnerable to further losses until this fundamental picture begins to shift. And given how price action had expanded on the way down, even as that vaulted parity figure was coming into play, there may be more volatility expansion in the near future. Because Forex is a decentralized market, pricing can differ across brokers, and some feeds that I’ve looked at this morning have shown a temporary test of parity while others showed the low coming in just above that level at 1.0000. EUR/ USD has finally done it, sort of.