Market Predictions

As  New Year gets underway, we are – as usual – bombarded by lots of talking heads from some of the major banks, brokerage houses and press who insist in giving us their New year market predictions for the EUR/USD.

Firstly, never mind that none of them saw that the EURO would free fall out of the sky starting last April after Draghi gave the green light to start the trashing – apparently their ego is not dented and this year they all to man predict more blood shed and prices at anything from 1.18 to 1.12 or even lower in some cases.

Secondly why the EUR/USD and not something else which might be easier to predict ?

What should you do when confronted with such unanimity ? Well if you understand anything about markets, you’ll know that the market does in the long term completely the opposite of what the majority expect.

Frequently things don’t start out by looking like how they will finish, this should be obvious but it is a point frequently over looked by most traders.

So based on the knowledge we have now obtained, expect the EUR/USD to be higher than it currently is this time next year, but also expect the road to be very rocky with plenty of volatility across the board.

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