Euro should drift toward and eventually past parity with USD. Any short term bounces should be sold unless and until 112.996 is broken on the weekly chart. If it bounces from here (which it could) it should meet with more resistance near the 1.0757 declining 9 wk MA and then the 1.1041 declining 30 wk MA.
Fundamental reasons include:
ECB extension of QE through Dec '17
FED expected to continue rate hikes in '17
Continued Political instability throughout Europe poses serious risk to Euro's very survival
Tremors of demand for Euro exit in PIGS
Russian expansionary Foreign Policy, continued clash w/ west in Middle East
Migrant drain on European Welfare systems continues as conflicts intensify in Middle East
Technical reasons include:
Bearish MACD cross at 0 line on weekly chart
Price below descending 30 wk MA
Price below descending 9 wk MA
RSI @ 35.816
Close to breakdown of 1.5 yr consolidation channel (needs confirmation)
Please feel free to offer any feedback and/or insights you may have!
Fundamental reasons include:
ECB extension of QE through Dec '17
FED expected to continue rate hikes in '17
Continued Political instability throughout Europe poses serious risk to Euro's very survival
Tremors of demand for Euro exit in PIGS
Russian expansionary Foreign Policy, continued clash w/ west in Middle East
Migrant drain on European Welfare systems continues as conflicts intensify in Middle East
Technical reasons include:
Bearish MACD cross at 0 line on weekly chart
Price below descending 30 wk MA
Price below descending 9 wk MA
RSI @ 35.816
Close to breakdown of 1.5 yr consolidation channel (needs confirmation)
Please feel free to offer any feedback and/or insights you may have!