All eyes are on the EUR/USD chart at the moment as the pair flirts with a potential break of parity. All things being equal, that’s a major psychological level but it may appear to be more symbolic if anything else considering sentiment that is at play.

I outlined some thoughts earlier here and with a break of parity, the euro could come under further pressure against the dollar towards 0.95 to 0.96 potentially. For now, it’s all about clearing parity and getting used to seeing the pair trade in and around the 1.00 mark.

But considering the market mood and sentiment, it’s tough to see this as being where the euro makes a grand stand against the dollar. The drop to parity today is the first since December 2002.

This article was written by Justin Low at www.forexlive.com.