Is the EURUSD pair heading towards 1.1550?

Is the EURUSD pair heading towards 1.1550?
Is the EURUSD pair heading towards 1.1550?

The EURUSD has dropped by approximately 400 pips over the last two weeks (1.23 to 1.19). After a decade of zero interest rates, money printing and corporate bond purchases, the most recent inflation rate in the Eurozone is still only paltry a 1.2%.

Add to this over $1 trillion in non-preforming loans in the Eurozone banking system and the signs of any normalisation interest rates or a reduction in bond purchasing looks like a pipe dream for Mario Draghi at the ECB.

The Fed on the other hand are likely to increase interest rates two more times in 2018 and this action alone should provide further strength to the US dollar even though I believe the US economy is not in great shape.

So, where to now? The next level on our EURUSD chart is 1.1831 followed by 1.1714 and at this level break would take us to 1.1550. However, predicting where the price may go next on any instrument can be an exercise in futility.

My opinion is based on what I see NOW from both a fundamentally and technically perspective in relation to this pair. NEW data, both economic or political may change my view over the coming days, weeks or months.

As a trader, you need to be able to adapt and change your opinion at any given time when presented with new information if you want to become successful in this game.

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