Tom Fitzpatrick, Citigroup’s top FX technician combines technical and fundamental analysis to assess that EUR/USD is headed to parity or below. In an interview with CNBC he explains exactly why. Fitzpatrick compares the 9 years between 2005 to 2014 the 9 years between 1989-and 1998 and finds big similarities in technical behavior and also in the backdrop: He mentions the housing crisis in 89-91 the collapse of the ERM 92-94, the emerging market crisis, in 1998, Russian default, the convergence fade within the continent, the negative feed into Europe and the weakening of euro components in October 1998. All this looks similar to the last 9 years. Looking at the similarities between these periods, the analyst sees 1.40 as a top level and the EUR/USD following the downtrend in the next two years and eventually moving to or below parity. Monetary conditions have been tightening, and the strength of the euro has been behind most of this. A move from 1.40 to parity is equivalent to a 500 points basis move in interest rates, which is impossible as rates have reached their lower bound. Fitzpatrick concludes that a lower euro is not part of the problem but part of the solution. Here is the interview: Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next AUDUSD: Halts Weakness, Looks To Recover Higher FX Tech Strategy 8 years Tom Fitzpatrick, Citigroup's top FX technician combines technical and fundamental analysis to assess that EUR/USD is headed to parity or below. In an interview with CNBC he explains exactly why. Fitzpatrick compares the 9 years between 2005 to 2014 the 9 years between 1989-and 1998 and finds big similarities in technical behavior and also in the backdrop: He mentions the housing crisis in 89-91 the collapse of the ERM 92-94, the emerging market crisis, in 1998, Russian default, the convergence fade within the continent, the negative feed into Europe and the weakening of euro components in October 1998. All this… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.