Saturday, 17 January 2015
EUR/USD to descend into Nether-zone
The Euro's decline against the US Dollar has accelerated. The ECB's declared intention to purchase over €500 Billion worth of European government bonds has been re-asserted and progress on this is expected at next Thursday's (22 Jan 2015) meeting. The Swiss Franc has been decoupled from the Euro and immediately rose by 30%, moderated somewhat later. The US economy continues to out-perform the Euro zone.
We can't expect the decline of the Euro against the Dollar to end anytime soon. I have removed my former target of $1.10, and instead anticipate a continuing free fall, placing a Trailing Stop at 2% to take me out temporarily if a bounce of any significance occurs.