How low will EURO go? This is the most important question that is bugging the minds of most currency traders. f you are trading EUR/USD and other EURO pairs, you should keep this mind. EURO is a currency that has been down trending for the last many months. The downtrend started in May 2014 and continues and will continue. EURO is heavily influenced by the policy decisions made by the European Central Bank and what is happens in the Eurozone. Obviously it is the job of the European Central Bank to manage the Eurozone. So if you are trading EURO pairs, always keep a very close watch on what the European Central Bank does.
The euro may be the Charlie Brown of currencies, as like the comic character, it’s under a cloud of negatives, including the Greek election outcome, with analysts tipping further downside. “It’s the ugliest horse in the glue factory,” Jeffrey Halley, senior manager for foreign-exchange trading at Saxo Capital Markets, told CNBC, advising selling it against all other G-10 currencies.
Expect EUR/USD to touch parity 1.00000 and then go below. There is no limit to the EUR/USD downside right now. So the best EUR/USD trading strategy right now is going short. Make sure you don’t short the rebound which are going to happen here and there in the downtrend. Good Luck!