EUR/USD Q1 2013 Forecast

The first quarter of 2013 should be a fairly active one for the EUR/USD pair. Currently, the United States is dealing with “fiscal cliff.” This is a set of tax increases & spending cuts at the end of the year if Congress cannot come up with some type of spending compromise. The next three months will see nothing short of an emotional roller coaster for this currency pair. Essentially, we could have a sudden drop in EUR/USD pair. Also, we should not forget the European debt crisis that will continue. After all, nothing's constructively been done other than the European Central Bank accepting that it is willing to buy peripheral that if the countries ask for it. I do not see this currency pair be able to break above the 1.35 level anytime soon, and do not see the likelihood of a break down below 1.25 either. If EUR/USD does manage to break above the 1.35 level however, I believe that this pair will actually skyrocket. There we will see extreme choppiness with a slightly upward bias. Read Full article