EUR/USD, H4 chart
The euro plunged on Monday due to the escalation of the gas crisis in Europe.
Gazprom planned to resume gas flows through Nord Stream 1 on September 3. However, the pipeline is still shut. Gazprom says Nord Stream 1 must undergo technical maintenance.
In this light, gas prices in Europe swelled by +30% to 272 euros per megawatt hour.
Contracts for delivery in October are now trading at 256 euros per megawatt hour, up by +23%.
The current prices are +400% higher than a year ago.
The European Union is now taking emergency measures: Germany has announced a $65 billion plan to combat rising energy prices.
In the Baltic region, heating prices have climbed by +100%.
Against this backdrop, the euro showed a rather modest fall.
Expectations of a 0.75% rate hike on September 8 provide support for the euro.
Long positions on EUR could be opened from 0.9950 or on a bounce. A Stop Loss order could be placed at 0.9880, with a Take Profit order of no less than 100 pips.
