Maybe I am a biased American or maybe someone who just wants to see the world burn but I don’t see this European Union experiment working in the long-run. At what point are the Germans tired of paying for weaker economic nations? At what point are the weaker nations tired of being held hostage? We are already hearing rumors following Brexit of Ita-leave and rumblings from the rest of the PIIGS (if you remember that acronym). The EURUSD is vastly approaching 1.00 and I think we will get there by year end. I think we need one last bounce (which if I am wrong is undoubtedly the buy of a lifetime but that’s how the cookie crumbles). Most of the trends continue to be in tact on multiple timeframes since the peak 1.50-1.60 days.
The EU needs to stay together in order to keep the world from entering a bi-polar world with China vs. US. Please do not get me started and call China a “developing nation”. All nations are developing and China is certainly one of the most developed economically. Regardless, the 500M population EU is a great antidote to a potential new Cold War.
I am by no means a political analyst or a technical analyst but EURUSD has been weak for a very long time and came utterly close to parity once already. I am under the impression the market enjoys testing these newsworthy levels repeatedly as it sells (metaphoric) papers. Keep the popcorn ready as I think parity would present other issues for related assets and global industry. There could be some major buying opportunities in the near future!