Why should the euro trade below sub parity levels ??
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Well I have learnt that this pair does not follow price action much. Its more of a fundamental following currency. Here are the divergent fundamentals.
The fed's are raising interest rates which they have named as the"lift off". They are likely to raise interest rates to as high as 3.75bps while the Euro has just announced QE which will have known effects not until mid 2016. So there you go. The maximum pull back that this pair has had is not more than 300 pips. Given the extreme conditions ... hopefully we may see a pull back from the 1.05 levels because of the waiting orders at that level which currently accounts for about 1.25% of all the orders. Until then there are no major orders. The next major level is 1.00 at which sits about 2% of the total orders. So most likely we are going to see 1.00 and it will be sooner than expected.
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Well I have learnt that this pair does not follow price action much. Its more of a fundamental following currency. Here are the divergent fundamentals.
The fed's are raising interest rates which they have named as the"lift off". They are likely to raise interest rates to as high as 3.75bps while the Euro has just announced QE which will have known effects not until mid 2016. So there you go. The maximum pull back that this pair has had is not more than 300 pips. Given the extreme conditions ... hopefully we may see a pull back from the 1.05 levels because of the waiting orders at that level which currently accounts for about 1.25% of all the orders. Until then there are no major orders. The next major level is 1.00 at which sits about 2% of the total orders. So most likely we are going to see 1.00 and it will be sooner than expected.
Everything you want lies on the other side of fear.