Inflation data will come from the European Union on Thursday, but full trading volume will not be re-established until sometime next week, which means trading remains speculative.
Holiday Trading Producing Gains for Euro
The Euro has been able to sustain its holiday gains and has leaped into a very critical price juncture, as it trades comfortably above the 1.20 level against the U.S Dollar.
While forex continues to see experience light volumes, investors are certainly paying attention to the gains made by the Euro since early last week.
Euro Challenging Critical Resistance
The Euro has pushed forward against the U.S Dollar and is challenging important resistance near 1.21.
Economic data will remain quiet from the European Union until Thursday when a slew of inflation figures will be published from the continent.
Euro Will Remain Speculative in Coming Days
Until then, the Euro may remain extremely speculative as traders position themselves with the knowledge, the currency was not able to sustain these higher values in September.
However, it is a new year and the Euro which has been beaten back before may be able to withstand selling pressure this time around. But until full trading volumes re-establish themselves sometime next week, risk management will be essential for all market participants.
In the short term, we believe Euro may be positive. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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