There are still deliveries of Russian natural gas to Europe. But if we see a broad recession in the EU due to energy supply disruptions, EUR/USD could test levels around parityaccording to Commerzbank economists.
Think about whether technical analysis really helps
“If we see a wide-ranging energy-related recession in Europe, I think EUR/USD levels around parity are possible. Depending on the magnitude of the recession, even more than that. Nevertheless, if we don’t see it, I’m still waiting for the EUR/USD to recover“.
“You will have to decide whether to hedge EUR/USD risks or not. Hedging trades work regardless of what may happen in the world.”
“Technical analysis is an act of desperation among market participants who do not understand the reasons for market developments and instead rely on recognizing patterns, of course without rigorous statistical testing as to whether significant patterns are even discernible. The latter would normally produce a negative result. Even if I can’t tell you which way EUR/USD will go, I want to at least save you from that.”
Source: Fx Street
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