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Large traders sell the EURUSD pair and see parity under the influence of fundamental and technical analysis

EURUSD 2024 04 22

Technically the pattern is Triangle! Breaking through the border of the Triangle is a movement equal to the base of the Triangle.

The dollar has dominated the Forex market this year, losing 3% of the euro's value since early January.

Key points:

  • Traders are targeting euro-dollar parity.
  • The euro is trending toward a 6-month low.
  • Euro-dollar parity was last observed in 2022.

EURUSD hovered near a 6-month low of $1.0650 as Forex speculators were busy adding to their short positions. According to a Bank of America report. Traders have prepared options that will bring unexpected profits if the European currency reaches parity with the dollar. In other words, there will be big money at stake if

Behind this speculative move is the expectation that the European Central Bank will start cutting interest rates before the Federal Reserve. The US dollar has proved rocky in recent months as the US economy has released report after report showing strong growth despite persistent inflation. At the same time, Bank of America reports that traders are predicting a 10% chance of the euro falling to $1.00 in the next six months.
To achieve parity, about 600 points, or 6%, are needed. The last time markets witnessed such an event was less than two years ago. In September 2022, the euro-dollar pair reached $0.9535, a low not seen in more than two decades.

The experts DO NOT RECOMMEND opening any positions on the EURUSD pair and staying out of the market, since it is too late to sell and too early to buy!

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