EUR/USD Forecast December 16, 2016, Technical Analysis

EUR/USD daily chart, December 16, 2016

The EUR/USD pair broke down during the day on Thursday, slicing through the 1.05 level. This is an area that was so supportive recently that it’s now a very negative sign for the Euro. I believe now that we will reach towards the parity level, although it might take a couple of bounces between here and there to pick up enough sellers to do so. With the Federal Reserve looking to raise interest rates even further, the US dollar will continue to be very strong in general, while the ECB is looking to expand quantitative easing which of course will work against the value of the Euro.

Written by FX Empire