Eur Usd Forex Signals
EUR / USD Forecast
The euro had a very good year in 2009 against the dollar. 1.40430 began the year, went all the way to 1.51440 and ended the year at 1.43330.
The reasons are plentiful:
- The U.S. economy seemed on the verge of collapse.
- U.S. has a record deficit (still does).
- The world economy seems to be improving in the second half of 2009, resulting in an increased appetite for risk and those who drop the dollar for the euro.
- Interest rates in the U.S. were at an all time low.
However, it seems that things have changed temporarily, at least in this January. The dollar is on the verge of breaking the 1.4000 support and the euro is the currency that is feeling the pressure.
You can get a full analysis of EUR / USD here
My prediction is 2010 euros that the European currency will be vulnerable throughout the year and that the USD is likely to increase in relation to it. Naturally, I am not a prophet and you can make your own prediction, but this is what I think for the following reasons:
1. The European Union has too many members who are in serious trouble financial. All these problems weighing on the euro.
2. Countries such as Greece and Spain, with serious financial problems and unemployment rates are competing shoots with countries like the Netherlands, which seems to have weathered the crisis easily. How did these countries manage monetary policy is beyond me. You just can not please everyone as a policy of engagement leads to something that is not going to be the best for the Euro.
3. It seems that the U.S. has begun recover from the crisis and there are many who believe that interest rates in the U.S. be lifted soon. This will lead to an increase in the value of the greenback. This is probably what caused the EUR / USD drop we have seen over the past three weeks.
4. Now that the U.S. does not appear to be on the verge of collapse, attention has turned Europe. Some EU countries are in serious trouble and have a lot more press and media attention. This will lead to more fear on the side of traders and a further exodus of the euro.
Again, these are my thoughts. We invite you to act on them or not. It's your choice.
About the Author
Rob Trader – Forex Expert
http://tradingtoollist.co.cc/
EUR/USD Forex Trading – Elliot Wave Tutorial