Euro falling off a cliff

Wait... what?... so you didn't know about the Italian referendum? So ET is your main source of info and news?

 

To overcome sort of selection bias - I don't pay attention much to something I don't know.

 

After Italian "No vote" on Senate reform eyes are grounded on the ECB meeting scheduled for Thursday which might bring about a major move in euro.

 

After the past ECB meeting that embarrased me (and I bet, not only me) with the growth of EUR, while everybody thought it will fall... So, I wouldn't open any transactions today and advise all conservative traders not to open any orders too.
EUR rose on the eve of the meeting on the monetary policy, and the main question now is whether the ECB will surprise us again, causing a jump in the EUR/USD for 400 pips like in December 2015. The ECB reduced interest rates and extended its program of bond purchases the last year. But EUR/USD soared instead of falling, as officials haven't increased the volume of purchases of assets and reduced rates to the minimum. This year, the market is interested in whether the central bank will reduce it again. If they will, EUR/USD can expect a massive short squeeze.
Still, I can't say that price will guaranteed go this way.

 

I wonder how much further it will fall of FOMC raises the interest rate next week.

 

ECB mixed messages have caused a bit of a mess with the price of EURUSD. Tough to know how the price will move going forwards but even with the recent rally in EURUSD I expect that that the price will sell off at some point in the near future

 

I wouldn't be surprised if it reaches parity next year. The possibility of that seems to become more and more real with every passing day.

 

Now that the US Fed had said that rates might increase 3 times next year I think that parity is a real possibility. I can't see the ECB increasing rates for a looooooooooooooong time