The euro weakened toward $1.05 against a dollar, the lowest since April 2017, as investors are coming to terms that the European Central Bank faced with slowing economic growth and surging inflation due to the war in Ukraine would not be able to raise the borrowing cost as fast as the Federal Reserve. Russia halted gas flows to Poland and Bulgaria and said it will remain cut until the countries agree to pay in rubles putting additional pressure on energy prices.
The EURO short/medium term trend remains down, but trade is fighting to hold and rebounded off the 1.0470 target to start a minor correction up. Market action alerts for a potential bottoming turn. We may see dips around 1.0470, but a close under 1.0470 is needed to renew bear pressures. A close over 1.0560 alerts for a short term bottoming turn towards 1.0654.