The year 2014 is only a few hours from closing… the main question now is: what to expect from 2015?
Despite the bullish push on the EURUSD Tuesday the 30th of December, the EURUSD has made a brand new yearly low this week when it pushed lower down to the 1.2125 mark. It is very probable that the close of 2014 will be very near the low of 2014.
This indicates a lot of USD strength and I am expecting price to continue lower for the EURUSD in 2015. Maybe not right away in January, but ultimately more USD strength and EURUSD downside seems very probable at the moment. How much probability? It could be anywhere as high as 90% in my opinion that the low of 2015 will be lower than the low of 2014. Ultimately the EURUSD needs to break below 1.20 but if it does, then 1.15, 1.10 and even parity are potential targets.
Of course, for our day to day trading purposes we must focus on trading each setup correctly. But it cannot hurt to be prepared for big trades… and the EURUSD downside will most likely be a big trend in 2015.
I wish you a very Happy New Year and all the best in 2015!!!!
Best, Tarantula FX