Monday, September 15, 2014

Citi's Fitzpatrick: Euro Headed To Parity With The US Dollar Over The Next Two Years (CNBC Video)

Tom Fitzpatrick, Chief Technical Analyst at CitiFX Technicals, thinks the euro will drop to parity with the U.S. Dollar mainly because the Federal Reserve's and ECB's monetary policies are moving in opposite directions.

Source: CNBC.com

On August 11, after reading ECB President Mario Draghi's negative comments on the euro's fundamentals (8/7) and looking at Italy's GDP growth rate, the euro area's inflation rate and the euro's downtrend since its peak in 2008, I thought $XEU (Euro Index) looked very risky on the chart at 134.

The euro keeps making lower highs, so I think the trend is still down for now over the long term. This comic courtesy of Investing.com (by Noah Kroese) shows what is going on right now. Ha.

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