Euro Tests Will Continue for Traders

The Euro has seen downside pressure this morning but has fought back from lows to regain an equilibrium. The Euro remains a tantalizing buy for many traders, but patience will be needed.

Early Pressure on Euro

The Euro has come under pressure early this morning and was taken below the 1.20 level against the U.S Dollar, but it has shown the ability to reverse.

The Euro remains highly valued, and investors appear intent on testing the Euro’s short-term value in a technical manner. While the 1.20 level remains a focus, traders need to keep the 1.1950 level in mind as support – and the 1.2060 juncture as potential resistance.

Speculative but Support Remains Intact

The Euro has made vast gains the past two months, but traders may believe it has gained too rapidly, and this may be a reason for some of the downside pressures seen early this morning.

The mid-term shows the Euro has enjoyed staunch support, and its downside risks appear to be marginal compared to its upside potential. However, traders will need patience with short-term positions as they wait for profits to emerge.

Euro Emerging from a Long Slumber

Dovish rhetoric has continued to come from the mouths of U.S Federal Reserve members. In combination with the belief, the European Central Bank will need to be more aggressive, the Euro remains a tantalizing buy against the U.S Dollar as it comes out of a long-term slumber. 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.

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.