Mihai_Iacob

EurUsd can drop to 0.85-0.90 zone (long term outlook)

Short
FX:EURUSD   Euro / U.S. Dollar
Even I, who have been trading for 20y I'm used to a stronger Eur than Usd, so this outlook may seem fantastic, but in my opinion, both fundamentals and technicals are sustaining a drop under parity for EurUsd.
Looking at the monthly posted chart we can clearly see that since the 2008 crisis, EurUsd is in a downtrend and the only deviation from this trend was the 2020 break of the trend line that stopped in horizontal support and proved to be a false one in the end with the pair getting back under.
Indeed, at this moment, EurUsd is trading in a very strong technical support, but if we look closer at price evolution we can see that every little rally is sold (see yesterday's attempt of correction).
That being said, in the long run, I expect a drop under parity, and a 0.85 price is really not out of the question, on the contrary, is very probable at this moment.


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