Euro’s Range Trading Vanishing Soon

Headwinds Stopping a Euro Climb Short Term

As of this morning, the Euro continues to face rather stiff headwinds and is trading below the 1.23 level versus the U.S Dollar.

The Euro has been taken lower since early March and has not shown many capabilities of mounting an upwards trend short term. Important support for the European currency looks to be around the 1.2175 juncture, while resistance has proven strong around the 1.24 mark.

Euro Beaten Back From Highs

The Euro has taken twists and turns the past few months. After being taken to highs against the U.S Dollar in January, the European currency has been beaten back as the European Central Bank continues to act with a dovish stance and inflation data from the E.U remains muted.

Range trading may prevail for the Euro today, but this will end soon because the U.S Federal Reserve will release their interest rate decision and outlook on Wednesday. The Fed is almost certain to raise their lending rate, so it is their Monetary Policy Statement which will move forex upon its publication.

In the short term, we believe the Euro may be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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