Euro’s Dance Proving Opportunistic

The Euro continues to get tested in the short-term. ECB President Mario Draghi’s comments about a lack of inflation in the European Union spurred on some weakness. However, the Euro remains highly valued and potentially oversold.

Euro’s Short-Term Tests

The Euro is testing important short-term support in early trading today. The 1.19 level against the U.S Dollar is in focus and remains an opportunistic level for traders.

The Euro reacted to Mario Draghi’s comments late last week that inflation remains lackluster in the European Union. This put Euro investors on the defensive. However, yesterday’s victory by Angela Merkel served as a calming effect.

A Potential Trigger to Buy

The Euro remains within the higher realms of its mid-term value. The European currency has seen multiple bounces as it has been tested in the past month.

The 1.1850 support level is important if it gets tested, and if it is approached could serve as a trigger for speculative buyers with the belief it is undervalued.

Euro Remains in Good Position

The Euro remains in a good position against the U.S Dollar.

Even though it has faced a short-term test of its strength, the climb the European currency has made has created a foundation in which it may continue to build momentum.

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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