Goldman Sachs updated their long-term forecast for EUR/USD for 2016
stated that the price will be 1.000 by the April next year. It was
stated that bearish trend will be continuing with the secondary ranging
market condition up to October 2016.
| Instrument | Q1 Jan'16 | Q2 Apr'16 | Q4 Oct'16 |
|---|---|---|---|
| EUR/USD | 1.020 | 1.000 | 0.950 |
As
we see from the charts above (W1 timeframe and MN1 timeframe for
EUR/USD) - 1.0461 is the key support level for this pair for both
timeframes:
- on W1 timeframe - the price is located below Ichimoku cloud for the bearish breakdown to be started;
- monthly chart - the price is on bearish for the ranging within 1.1713 key resistance level and 1.0461 key support level.
Chinkou Span line is located below the price for the bearish trend to be continuing, and Ichimoku cloud together Senkou Span lines are far above the price which makes the bullish reversal to be impossible in this and next year for example.
Thus, the most likely scenario for this pair in the long-term situation is to break 1.0461 support level from above to below to 1.000 as the next bearish psy target.
