The Euro has remained under pressure the past two day. After attaining new highs, the Euro has lost value against the U.S Dollar rapidly and may continue
The Euro has remained under pressure the past two day. After attaining new highs, the Euro has lost value against the U.S Dollar rapidly and may continue to face headwinds the next two days as technical traders take advantage of its short-term range.
The Euro has taken traders on an amusement park like the ride this week and has traded in a broad range.
After plowing to new highs on Tuesday, the Euro promptly began to lose value against the U.S Dollar and its sudden weakness has been sustained.
The Euro is now trading below the 1.19 level and short-term support looks to be around 1.1820.
A mid-term look at the Euro against the U.S Dollar shows its strong trend remains intact
However, the last two days of trading have likely caused Euro buyers to reconsider their convictions and made them nervous. Yesterday’s strong economic data from the U.S likely added additional concerns to Euro bulls who may be worried about a more hawkish U.S Federal Reserve.
Important economic data will come from the U.S tomorrow via jobs numbers and inflation reports.
The Euro is likely to trade in a technical manner leading up to the U.S data tomorrow. And technical traders may take advantage of the Euro against U.S Dollar and position themselves depending on instinct. The Euro may continue to fight headwinds the next twenty-four hours as traders take advantage of its range.
In the short term, we believe the Euro may be negative. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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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.