EUR/USD Forecast December 29, 2016, Technical Analysis

EUR/USD daily chart, December 29, 2016

The EUR/USD pair initially went higher at the open on Wednesday, but continues to find the 1.05 level to be resistive enough to continue the downtrend. I believe that we will break below the 1.03 level, and extend down towards the parity level over the longer-term. I believe that short-term rallies continue to offer short-term selling opportunities, as the market will continue to favor the US dollar due to interest rate expectations. With the European Central Bank extending quantitative easing by nine months, that should not be a surprise to any of you.

Written by FX Empire