EURUSD: where is the end of the decline?
24.11.2014, 18:05

EURUSD: where is the end of the decline?

I remember as I conducted the seminar about the euro in May 2013 and I said that the euro would decline although the euro was climbing. Some seminar participants disagreed with me. One and half year later, I have never expected that the euro will decrease in such pace.

EURSUD monthly, May 2013

The euro has broken through the sufficient levels at 1.3000 and at 1.2744. It has last only one month. In the meantime, Eurozone’s single currency fell to 1.2358.

There is a question: where is the end of the decline?

From the fundamental view, it doesn’t look well for the euro. The divergence between monetary policies in Europe and the United States is getting bigger. The Fed has decided to end its bond-buying program, but to keep unchanged its interest rates for a "considerable time".

The European Central Bank (ECB) is willing to add further stimulus measures. The ECB President Mario Draghi said on November 17 that the central bank could purchase government bonds.

The euro dropped on last Friday after the ECB reiterated that the ECB is prepared to add further stimulus measures if needed. Investors speculate that the central bank is moving closer to launch the quantitative easing programme.

I think that the level of EURUSD at some about 1.2000 is realistic.

From the technical view, the euro could decline toward the support level at 1.2326. Then we could see a pullback to the level at 1.2744.

But there is also a possibility that the euro will pull back from the support line at about 1.2465 and we could see a pullback to the level at 1.2744.

EURSUD monthly, November 20, 2013

  • Name: Konstantin Meinhardt
Quotes
Symbol Bid Ask Time
AUDUSD
EURUSD
GBPUSD
NZDUSD
USDCAD
USDCHF
USDJPY
XAGEUR
XAGUSD
XAUUSD

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location