Failing to stem the fall lower, the value of the Euro against the US dollar has fallen below the parity of €1 =1$.
Increasingly alarming developments in Europe related to the protracted energy crisis where Russia is reported to close the Nord Stream 1 pipeline for 3 days at the end of August due to maintenance work.
This has caused a decline in the value of the Euro currency at the beginning of the week and stock investors have also seen major stocks in Europe suffer a decline.
Meanwhile, the US dollar is still seen to be maintaining its strengthening pattern with market sentiment being assessed as risky due to investor concerns focused on the risk of economic recession again.
A clearer indication of further price movements now awaits a speech by Federal Reserve (Fed) Chairman Jerome Powell at the annual Jackson Hole Symposium at the end of the week.
The price on the chart of the EUR/USD currency pair has continued the downward trend at the beginning of this week, continuing the bearish trend of last week until passing the parity level of 1.0000.
The decline continued until yesterday's New York session reaching around 0.99300 recording the latest 20-year low.
The decline also surpassed the lowest level recorded previously which was last July at around 0.99500.
If the bearish pattern is still maintained, the price is likely to continue its decline to the level around 0.9800 for the latest record low.
On the other hand, if the surge situation like last July repeats again, the price moving above the parity level of 1.0000 again will signal a change in the price trend.
Breaking the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart will increase the expectation to head towards the previous concentration resistance levels such as 1.01000 and 1.01600.
