The Euro continues to cause a fright for investors and maybe that is appropriate since it is Halloween tomorrow. The Euro continues to be tested near
The Euro continues to cause a fright for investors and maybe that is appropriate since it is Halloween tomorrow. The Euro continues to be tested near important support levels and has not produced an upward reversal in the short-term.
The Euro continues to trade near important support against the U.S Dollar after being taken to fresh lows on Friday when the European currency hit 1.1580.
The Euro is near 1.1620 now and continues to display weakened behavior. This has occurred in the aftermath of a better than expected growth number via the Gross Domestic Product outcome from the States before going into the weekend.
While the Euro has gained early this morning its results are not enough to signal a buyers’ parade for speculators. Most investors do not believe the U.S Federal Reserve will raise interest rates this Wednesday, but there is enough ammunition surrounding the central bank to cause nervousness in forex.
The additional factor that a new Federal Reserve Chairman is likely to be named this week who will start the job in February of 2018, has delivered weakness for the Euro against the U.S Dollar.
Let’s also remember the European Central Bank may view a slightly weakened Euro as a potentially good thing for the overall European economy, because of its ability to create better export demand.
Although long-term factors would seem to point to a higher valued Euro, the near-term downside pressure on the currency cannot be discounted and traders may look for lower values in the coming days.
In the short term, we believe Euro may be negative. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.