Euro Gains Relatively Unchallenged

The short-term surge of the Euro has gone on relatively unchallenged early this week as it makes new highs.

Euro Confronting Resistance

The Euro has continued to successfully confront resistance standing in its way.

The European currency is above the 1.23 juncture versus the U.S Dollar and has not experienced much pushback in the short term.

Is a Reversal Possible?

The European Central Bank will deliver its monthly monetary policy statement and press conference tomorrow. There will not be an interest hike, but investors will want to hear if ECB President Draghi begins to suggest a change in policy will develop over the next six months.

In the meantime, traders will look at the Euro’s mid-term breakout and wonder if a reversal is a possibility.

Dynamic Gains for Euro since December

The Euro’s dynamic gains since early December are evident when looking at a long-term chart.

And while many investors continue to believe the Euro may effectively add value, a risk management plan should be in place for potential volatility which could erupt near term.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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