The euro weakens as the energy crisis intensifies. After the euro failed to achieve a higher high above 0.8580, a fall below the base of the rebound at 0.8420 may have sealed its fate. As buyers rush to close their positions, the single currency could be subject to rising selling pressure. Last May’s lows around 0.8370 was another support and its breach confirms that sentiment has turned downbeat. 0.8440 is the resistance where the bears might look to sell into strength. 0.8310 would be the next target when momentum returns.
