EUR/USD headed to 1.2800?

Hey, guys, it's only 4-cents.

Thoughts?

current = 1.2414

 

Reason?

 

Yes, I'd be curious to hear this too.

 

perhaps the reason why is because the 'debacle' of a crumbling euro/euro zone due to the contrary vote is being replaced by statements like this:

The European Central Bank today characterized its current monetary policy as “appropriate” and predicted the eurozone economy will expand “in a sustained, albeit gradual, manner.”

source.

Also, overall, there is much profit to be taken on the USD since its sudden strengthening to almost 1.1850 against the euro.

Perhaps, too, traders feel there would be more profit now in buying euro and other major currencies/selling USD than there would be chasing the dollar anymore.

And that would be all it takes.



fx
current = 1.2474

 

nah, it would only rise to 1.28 for technical reasons. Fundamentally, I think China's effect on the USD is overblown.

 

the yuan definitely has had a distorted effect on pricing the USD and the yen.

as that factor simmers down the effects will be seen in the market for sure.

technicals are undoubtably pointing for the euro to go higher against the USD.

though I am not a technical analyst.

neither am I making a case for EUR/USD to go to 1.2800 - just want to make that clear.

I simply asked for thoughts on the matter.

If it DOES go to 1.2800, I did NOT "call it."

Trading it, Yes. Calling it, No.

 

Maybe the rate will fluctuate back down to 1.2000 or under then play the range back up to 1.2500 for a while.

It's just that, I see nothing blocking it from hitting 1.2800.

And in the past when that's been the case, rates have usually gone to the point I think they will.

 

Because all paper money eventually goes to zero, it is just a race to see which one can do it first.