The EURO can depreciate -6.5% to EUR/USD 1.028
The EUR/USD chart on a month time scale highlights the continuous downward drifting price/volume trendline of the exchange rate compared to the USDollar.
Therefore, from a technical standpoint, further depreciation of the EURO can't be ignored. The main factor in the medium to longer-term will become money markets interest rate differential, as the ECB will not be capable of normalizing EURIBOR and EONIA interest rate benchmarks, thereby the ECB and the EUROZONE are particularly weak in confronting High INFLATION and STAGFLATIONARY SCENARIOS.
Interest rate differential with the USDollar and other G10 currencies would likely put pressure on the EURO, while currencies market and dealers will be forced to Sell Short the EURO outright.
An Exchange Rate large sigma repricing -20% could see the EURO dropping below parity compared to the USDollar EUR/USD 0.835<0.85 exchange rate level.
The RSI and MACD oscillators signal a steady drifting lower in the price/volume EUR/USD trendline, the middle channel stationary point EUR/USD 1.028<.1.03, the minimum point of the channel EUR/USD 0.83<0.85
Therefore, from a technical standpoint, further depreciation of the EURO can't be ignored. The main factor in the medium to longer-term will become money markets interest rate differential, as the ECB will not be capable of normalizing EURIBOR and EONIA interest rate benchmarks, thereby the ECB and the EUROZONE are particularly weak in confronting High INFLATION and STAGFLATIONARY SCENARIOS.
Interest rate differential with the USDollar and other G10 currencies would likely put pressure on the EURO, while currencies market and dealers will be forced to Sell Short the EURO outright.
An Exchange Rate large sigma repricing -20% could see the EURO dropping below parity compared to the USDollar EUR/USD 0.835<0.85 exchange rate level.
The RSI and MACD oscillators signal a steady drifting lower in the price/volume EUR/USD trendline, the middle channel stationary point EUR/USD 1.028<.1.03, the minimum point of the channel EUR/USD 0.83<0.85
