Yesterday, as U.S. long-term interest rates rose, there was a strong push to sell the euro. Concerns about the eurozone grew as the German coalition government collapsed, and Germany’s November ZEW index, released yesterday, was much lower than expected at 7.4 (the forecast was 13.0). This caused even more euro selling. The euro fell below this year’s lowest price of $1.06, reaching as low as $1.0595. However, after about an hour of trading, it recovered and closed above $1.06.
In the short term, a strong adjustment is expected as the euro’s decline may widen. However, it is expected that the selling trend for the euro will continue. A strategy of selling on rebounds is advised.
Expected Euro-Dollar Range: $1.0680 to $1.0550
Note: The above information does not guarantee profits. Please make your own decisions when trading.