Essay: 60 Days Forecast for Dollar and Euro

Sample Essay

The current price of Euro against US dollar is 1.4530 and the forecasted value for 30 days is 1.462. It is obvious that the Euro is gaining momentum against the dollar especially in the future contracts and the demand is going up which reflects that the Euro will continue to rise in the short run and long run due to heavy demand and weak economic conditions in the United States of America and conservative policy of the Federal Reserve.

The month to month and weekly historical trend of Euro vis-a-vis the dollar shows a pattern of firm and strong growth. The expected support level for 60 days with reference to the trend analysis is about 1.4365 and the resistance level for the period is 1.4620.

Based on the historical pattern it is estimated that the Euro will gain a level of around 1.4750 in the next 60 days. The trend analysis for the Euro is based on the historical average change in the Euro and the estimated level of 1.4750 is yet again reconfirmed by forecasts provided by the financial forecast center but has been revised to depict changes in the current market regarding the demand for dollar against the Euro (The Financial Forecast Center, 2009). The estimated level of 1.4750 is expected in the next 60 days as a resistance level of 1.4620 is breached as the historical pattern of the Euro indicates that a if the currency breaks any major resistance levels such as the one at 1.4600 it further inclines with at least 15 to 30 pips before retracing to lower levels.

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