EURO/US$ - 1.0070 to mark the end of the 8 year bear trend.
Date: 7th January,2017 by Timothy Straiton
The euro has traced out lower highs and lower lows ever since the peak achieved in July 2008. Much of this weakness can be attributed to the enforcement of artificial interest rates, although it is becoming increasingly evident that a gradual normalization in monetary policy will take place during 2017.
The collapse of the US bond market in the latter half of 2016 will have its consequences in Europe sooner or later. Further short-term weakness down to 1.007, which marks the Fibonacci 76.4% retracement level based on the 1.6038 - 0.8225 range made between October 2000 and July 2008 is possible. Thereafter a reversal of the current bear trend is more than likely and could propel the Euro to 1.30 or higher later this year.
The above represents the opinion and analysis of Mr Timothy Straiton, based on data available to him, at the time of writing. Mr.Straiton's opinions are his own, and are not a recommendation or an offer to buy or sell securities.
Mr.Straiton is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr.Straiton recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified market analyst with over 30 years experience, Mr.Straiton is not a Registered Securities Advisor. Therefore Mr.Straiton's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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