Euro is steadily going down, as we can see when analyzing the monthly chart. We can see that the fine wedge was broken and it is just a matter of time for the currency pair EUR/USD to become equal. It is also possible that the pair will fall even more and reach the 0.9000 level.
Now, it is wise to remember that not only the increasing difference in the monetary policies of two large central banks in the world (the FED and ECB) affect the EUR/USD exchange rates. In 2017, an election will take a place in the key countries of the EU. They may turn to be as unpredictable and unexpectable as the elections in USA or UK referendum:
Brexit is going to affect the UK in one way or another, and won’t let the Pound to go up. Although, it can be clearly seen that the British currency will enter a range in between the levels of 1.3500 and 1.1450 in the next year:
Franc has now approached THE horizontal level third time in a row and is ready to break it striving to new heights. The last hint showing its growth was a 2014 pullback, which has happened away from the broken descending channel (2nd point in the chart). If this is the case then we are going to expect the Franc to reach the 1.1600 level, although we are hoping for greater changes to happen. Everything depends on the direction the American currency is taking:
The pair has nicely pulled back from the broken descending channel, 50% Fibonacci level and psychological level of 100.00. It may reach the 125.85 level soon. But this pair is about to reach the width of a broken channel, which means the level of 140.00 in the long term. And again, the difference in the monetary policies of FED and Bank of Japan will make this pair head North:
The Russian Ruble is slowly getting stronger. It has been strengthening its position around the broken descending channel for many months in a row. Now, the pair has touched the level of 60.39 and drawn a hammer pattern (or dragon, to be more precise). It is now ready to reach the level of 71.70:
COT CFTC reports finally started to show that the large bulls are closing their buying positions and getting more interested in the sales. Hedgers are actively decreasing the sales of the Russian currency. We are expecting the pair to go up in the 2017. The growth of this pair is supported from the technical and fundamental point of view:
I would like to wish you a very profitable New Year! Be ready for market surprises, so move forward and better your skills!
Merry Christmas and a Happy New Year!!!
Next market review will come on January 11, 2017.