Dangerous Day Ahead for Euro as All Eyes on the ECB

The Euro is certain to see significant volatility today as ECB President Mario Draghi speaks. Traders must be ready for reversals on technically driven positions. Traders need to be alert during the ECB Press Conference.

Mario Draghi Effect

Traders of the Euro must be prepared for a challenging day of trading.

European Central Bank President Mario Draghi will impact the Euro against the U.S Dollar during his Press Conference. The Euro is traded within a tight range this morning but is beginning to show signs of volatility.

Support for the Euro may be around 1.19 and resistance about 1.20. However, short-term traders should be ready for technical reversals to abound, as the Euro tries to find its equilibrium after the dust settles from the ECB pronouncements.

Draghi Rhetoric Certain to Impact

The Euro has put in a solid upward climb against the U.S Dollar in the mid-term, and we believe the Euro will still attract more buyers in the coming month. However, traders must acknowledge the last time the Euro pushed up to the 1.20 mark against the U.S Dollar it was promptly pushed back.

Today’s trading may continue to display speculative fireworks because of Mario Draghi’s rhetoric. The ECB President is expected to talk about better economic conditions in the European Union, but while trying to sound cautious.

Euro Well Positioned to Emerge

The Euro has maintained its higher value and not suffered major drawbacks. A look at a long-term chart shows the Euro is still in the middle of its value range after emerging from lows seen last year.

Traders with short-term positions should stay alert today and understand volatility will be significant.

In the short term, we believe the Euro may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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