EUR/USD after Draghi
The day after an ECB event is important. It gives traders an important clue about how strong any moves were and whether sentiment remains strong enough to keep those moves intact. Traders are reacting to the headlines after the announcement and the next day are assessing what they actually mean for the long term.
The facts: ECB is keeping it’s foot on the easing pedal, while the market is looking for Fed hikes in the months to come.
We believe that the parity in EUR/USD forex pair will come before the end of 2016, but it will be not because of a regular fundamental shift.
EUR/USD will hit parity because of the big “Jon Doe”.
After yesterday’s reaction we believe that the possibility of EUR/USD hitting the parity by the end of the year is 90%, less than our previous forecast which was 96%..
Short term traders should follow the trend, but longer term still have to keep their target in parity.
Important Technical levels
Very strong Support: 1.0810
Very strong Resistance: 1.1440