The euro has started its delcine as expected and previously stated.
Some may believe this just to be a pullback and it may be in the short term, but longterm, the technicals and fundemetals suggest nothing but euro weakness in general.
Overall, medium to long term ie the next couple of years I expect euro weakness, dollar strengh and pound strength against the euro but weakness against the dollar.
With that in mind all strongly correlated pairs should follow these examples as they have for years.
As said in the previous post, I wouldn’t be suprised to see eur/usd parity before 2015, but this depends on dollar growth/politics and euro zone break down, ie one or more countries leaving.
In the short term I would expect to see eur/usd support around 1.2750 followed by a correction then continued decline.
The most serious area of support I would expect to be around 1.200. If the 1.200 support is broken convincingly then I see no reason why parity wouldnt follow.
For continued eur/usd declines today and next week the current area of price action 1.2885 needs to be pushed past. If there is a strong close past this point on the dollar then I would expect continued weakness next week.
With regards to the eur/gbp, price action has made good progress and I expect futher declines throughout next week. The 0.8030 area and then 0.8000 are both areas of support to be aware of.
The gbp/usd needs to continue pound weakness past the 1.5960 area if futher strong declines are to be expected in the coming weeks. If this happens I would expect price to continue lower with some repect being shown at 1.5820. If there is a strong close below this price then I would expect further weakness over time, down to past 1.5500, but beyond that it is hard to predict.
What are my fellow traders thoughts?