EUR/USD Price Analysis: The parity zone is expected to hold the downside

• EUR/USD reverses gear and plummets to the parity region.
• The loss of that level could expose the YTD low at 0.9863.

EUR/USD sharply reverses the recent advance and rapidly drops to revisit the vicinity of the psychological parity level on Tuesday.

The continuation of the retracement threatens to breach that important area of contention and pave the way for a potential challenge of the 2022 low at 0.9863 (September 6).

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0748.

EUR/USD daily chart