EURUSD weakness threatens parity breakdown
The EURUSD is challenging parity. The daily chart trades between the lower blue and red bands in its bearish area. Notably, its stochastic is in its lower quintile (green rectangle). The longer it maintains this position, the greater the chance of lower prices. Moreover, the downside volatility is expanding per the diverging Bollinger bands (black ellipses).
The dollar is potentially setting up for its next swing high. If this charts, parity won't hold, and we will see a lower EURUSD. To this end, the hourly chart on the right will be helpful. The S2 pivot is the critical short-term support. However, the trend-following EMAs are bearish (black ellipse). If the short-term stochastic falls below 20 (blue arrow) and holds, the EURUSD's support will come under pressure.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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