EURUSD - ready for panic selling?

EURUSD - ready for panic selling?

21 October 2016, 16:30
Andre Enger

Is the EURUSD about to enter a multi-year phase of suppressed prices? Mapping the long term EURUSD exchange rate to the emotional market cycle, it seems as if the panic stage is just about to set in.

Mapping the EURUSD (red) to the emotional cycles from

Fundamental factors such as Brexit, the debt crisis, and declining interest rates, all seem to reinforce a negative outlook for the EUR. Looking at the Euro Area GDP, it too seems bearish.

Euro Are GDP + forecast from

So in conclusion, it is advised to be a bit careful if thinking about buying the 7-month dip which the EURUSD currently is in.

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