Analysts at Mizuho Securities Co. believe that the single currency may undertake a big move at the beginning of the next year trading versus the greenback. The assumptions were made on the basis of Ichimoku analysis.

The specialists note that the lines Senkou Span A and Senkou Span B are converging, compressing the Cloud at $1.36 area on December 31. The big move tends to occur around a twist of an Ichimoku Cloud. Before such significant change of the rate the pair EUR/USD may trade in range between $1.30 and $1.34.

It can’t be said, however, which direction such a big move will take. The strategists suggest that easing of tensions relating to the European debt crisis may help the euro to strengthen.

More info about FBS