EUR/USD: Next bearish targets aligns at 1.0750 and 1.0650 – MUFG

EUR/USD fell back to its lowest levels on Monday since the first phase of the COVID-19 crisis in early 2020. As economists at MUFG Bank note, energy price shock keeps risks titled to downside.

Gas prices surge higher in Europe

“The price of natural gas in Europe has already surged higher by almost 200% since the Ukraine conflict started creating a significant headwind for growth in the eurozone. The weakening growth outlook for the eurozone economy is already reflected by the weaker euro.”

“The next key support levels come in around 1.0750 and then 1.0650 with risks remaining titled to the downside for the pair.”