There are many cross currents both political & economical to really form a accurate view on longer term as to where EURUSD will head. Good augments could be made why EURUSD should drop to parity or even lower. However, I am ignoring all that and consider price charts only. If my view turns out to be wrong it would be completely wrong and will review it at point which I consider it be invalidated. In the meantime I hope to explain why I have optimistic view of EUR over next 12-18 months in which EURUSD could progress higher to retest the all time high or even make new minor higher high. The Objective of this analysis in not necessarily to predict actual path of the future price development but general direction and possible extent of the move. For detail of how I have arrived at that please read notes and check charts below. In the immediate future I expect EURUSD to form a bottom around 1.2980 -1.2875 (50% retracement of July 2012 low to Feb 2013 high), little lower than shown in my last published chart of possible bottoming area.
