Wednesday 3 December 2014

EUR/USD Broke Below The Support




It looks like my prediction from yesterday that the EUR/USD range might continue until the USD non-farm payrolls was wrong, because the pair broke below the support at 1.2350. Under these circumstances, and unless something surprising happens after the USD non-farm payrolls and the ECB rate decision, the bearish trend will continue and the pair will head for target 1.2200, perhaps even to 1.2000. I have even heard some talk of reaching parity - 1.000 – and I am starting to wonder whether that is actually possible, although it’s likely too early to tell.

6 comments:

  1. Bearish downtrend continues as expected and 1.2350 was broken, reinforcing bearish momentum for the trend. Bears remain in control of the pair below the 10-day moving average, currently at 1.2425. The fundamental explanation for the bearishness on the Euro sums up nicely on the following title: “Eurozone suffers from low potential growth and weak competitiveness, while political support for reform remains limited.”

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  2. I will keep eye on this pair.

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  3. Very nice article. Thank you.

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  4. Let's see what the euro would offer us end of the year.

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