10.10.202216:34 Forex Analysis & Reviews: EUR/USD in the bear market zone

We discussed the outlook for the dollar and the forecast for its dynamics for this week in one of the articles today. As for its main competitor in the euro currency market, it continues to actively decline in tandem with the dollar. Even though European Central Bank President Christine Lagarde, at the end of last month, noted the readiness of the regulator to continue raising the interest rate, despite the increased risks of a recession in the region's economy, the euro is under pressure both from weak macro statistics from the Eurozone, and against the backdrop of high geopolitical tension in Europe due to the events in Ukraine, which threatens to intensify the escalation of the military conflict.

Today, a number of important facilities in Ukraine were attacked by the Russian Aerospace Forces, as they say in the media, in response to a terrorist attack by the Ukrainian special services on the Crimean Bridge. And this is after the destruction of three gas pipelines of the Nord Stream system near the Danish island of Bornholm. According to representatives of Nord Stream AG, which is the operator of the project, critical damage has been recorded, the timing of the repair of which is still unknown.

At present, important macro statistics for the eurozone are not included in the economic calendar. It will appear only on Wednesday.

As of writing, EUR/USD was trading just below the round 0.9700 mark, in a sustained bear market. From a fundamental point of view, we should expect at least a strong bearish momentum in the EUR/USD pair, and at a maximum, a further fall of the pair towards 20-year lows, when it was trading near 0.8700, 0.8600. In general, the downward dynamics of EUR/USD remains.