EUR/USD created a historical record yesterday, Monday 25th April 2022, with the price falling to its lowest point ever in ten years. The bears have seemingly had their most lavish feast on this pair during the Asian session pushing the price down as low as $1.06952. At this point alone, the bulls resurfaced to defend the denigrated pair.
The increasing dollar strength due to rapid growth in the US economy, imminent interest hikes, and increased employment have greatly affected the Euro.
Similarly, the Euro has been severely affected by the acceleration of the Russian-Ukraine war that had crippled the flow of exchange in energy products, especially oil. Russia has mandated that EU countries pay for oil purchases using the Russian Ruble or risk a drastic reduction in supplied volumes. Many EU countries trying to abide by the agreement bidding have had severe difficulties acquiring oil from Russia ever since.
A third and more important factor that similarly affected the Euro currency yesterday was the outcome of the just-concluded French presidential elections. The incumbent president Emmanuel Macron secured his presidency by fending off campaign rival far-right opposition candidate Marine Le Pen at Sunday’s runoff vote.
Macron gathered the support of over 58.55% of Sunday’s vote and hence emerged as the first re-elected French leader in 20 years.
Unsurprisingly, signs of uncertainty were felt in the market regarding the outcome of this election during yesterday’s Asian session, most seemingly due to anticipation before the news release.
Currently, EURUSD is absorbing the loss and recovering from the severe drawdown. Nonetheless, a substantial buying opportunity for investors is now available to those who always wished to buy at the lowest support level. The market seeks a massive recovery for EURUSD at this point.
