Pepperstone logo
Pepperstone logo
  • English
  • 中文版
  • Ways to trade

    Pricing

    Trading accounts

    Pro

    Premium clients

    Refer a friend

    Active trader program

    Trading hours

    24-hour trading

    Maintenance schedule

  • Trading platforms

    Trading platforms

    TradingView

    Pepperstone platform

    MetaTrader 5

    MetaTrader 4

    cTrader

    Integrations

    Trading tools

  • Markets

    Markets to trade

    Forex

    Shares

    ETFs

    Indices

    Commodities

    Currency Indices

    Cryptocurrencies

    Dividends for index CFDs

    Dividends for share CFDs

    CFD forwards

  • Market analysis

    Market news

    Navigating Markets

    The Daily Fix

    Meet the analysts

  • Learn to trade

    Trading guides

    CFD trading

    Forex trading

    Commodity trading

    Stock trading

    Crypto trading

    Bitcoin trading

    Technical analysis

    Candlestick patterns

    Day trading

    Scalping trading

    Upcoming IPOs

    Gold trading

    Oil trading

    Webinars

  • Pepperstone Pro

  • Partners

  • About us

  • Help and support

  • English
  • 中文版
Trading

EURUSD performance so far this year

Pepperstone
Pepperstone
Trading Guides
8 Sept 2022
Share

A look at the decline

From the January 2021 peak of 1.2350 to the August 2022 low of 0.9899, we have seen a selloff of 2451 pips or just under -20% (-19.90%) in the major currency pair, the EURUSD.

Preview

Figure 1 Trading View EURUSD selloff

The fundamental drivers for the USD Dollar

 We need to wind back the clock to before the US dollar 2021 base. In March 2020 the Covid-19 virus hit the headlines in Europe. The immediate panic that ensued had a positive effect for the US dollar as investors look to park their cash in safe-haven currencies, like the US dollar.

With aggressive global Central Bank action, this rally was short-lived, and the US dollar declined.

 At the beginning of 2021, some normality was returning to our lives and coupled with this, investors’ expectations of a reversal in Central Bank action.

We have seen an aggressive boost to the value of the US dollar in 2022, with higher commodity prices, high inflation, and an aggressive interest rate policy from the Fed.

Preview

Figure 2 Trading View DXY 2022 rally

The fundamental drivers for the Euro

The Euro has been the hardest hit by the Ukraine war. It has resulted in an energy crisis that could plummet the Eurozone into a deep and prolonged recession.

Christine Lagarde, the ECB president, is juggling high inflation while trying not to dampen growth.

This has resulted in some thinking that the European Central Bank is behind the curve in raising rates.

A look at EURUSD from a technical viewpoint.

The negative price action in August resulted in EURUSD trading to the lowest level since December 2002, 236 months ago.

Using smoothing indicators, such as moving averages (the 50 Blue, 100 Green and 200 Black), we can clearly see EURUSD is a downward trend.  

Although there have been some signs of the US dollar rally faltering, A break of the 1.0330 – 1.0470 range is needed before investors might consider a turn in long-term sentiment.

Preview

Figure 3 Trading View EURUSD monthly chart

On a final note, It’s worth keeping an eye on sentiment as many people are likely finding the dip a bargain to buy. Eventually, there will be a squeeze which could see a sudden run higher in prices.


Related articles

Is GGP a good investment?

Is GGP a good investment?

Trading

The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

Other sites

  • The Trade Off
  • Partners
  • Group
  • Careers

Ways to trade

  • Pricing
  • Trading accounts
  • Pro
  • Premium Clients
  • Active Trader program
  • Refer a friend
  • Trading hours

Platforms

  • Trading Platforms
  • Trading tools

Markets & Symbols

  • Forex
  • Shares
  • ETFs
  • Indices
  • Commodities
  • Currency indices
  • Cryptocurrencies
  • CFD Forwards

Analysis

  • Navigating Markets
  • The Daily Fix
  • Pepperstone Pulse
  • Meet the analysts

Learn to Trade

  • Trading Guides
  • Videos
  • Webinars
Pepperstone logo
support@pepperstone.com
1300 033 375
Level 16, Tower One, 727 Colins Street
Melbourne, VIC Australia 3008
  • Legal documents
  • Privacy policy
  • Website terms and conditions
  • Cookie policy
  • Whistleblower Policy

© 2025 Pepperstone Group Limited

Risk Warning: Trading CFDs and FX is risky. It isn't suitable for everyone and if you are a professional client, you could lose substantially more than your initial investment. You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your personal objectives, financial circumstances, or needs. You should consider whether you’re part of our target market by reviewing our TMD, and read our PDS and other legal documents to ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice if necessary.

Pepperstone Group Limited is located at Level 16, Tower One, 727 Collins Street, Melbourne, VIC 3008, Australia and is licensed and regulated by the Australian Securities and Investments Commission.

The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

© 2024 Pepperstone Group Limited | ACN 147 055 703 | AFSL No.414530