The Euro has made significant gains the past two days as it has emerged against the U.S Dollar. The Euro is testing resistance not seen since late
The Euro has made significant gains the past two days as it has emerged against the U.S Dollar. The Euro is testing resistance not seen since late October. Volatility in FX may be prevalent in the short term.
The Euro has suddenly emerged with solid gains early this week. The European currency has broken important short-term resistance and is above 1.18 against the U.S Dollar.
The rebound in the Euro coincided with a sentiment shift regarding the U.S Dollar as hopes for a comprehensive tax reform package fade in the States.
The mid-term has seen a drop in value for the Euro since early September, but the gains made the past two days have put the currency back in a position to test late October values.
Economic data from Germany regarding Gross Domestic Product numbers were solid yesterday. But speculation surrounding the Euro has more to do with market psychology now.
Support for the Euro proved strong around the 1.1630 levels. And traders who believed the currency had been oversold against the U.S Dollar have done well.
The Euro may continue to attract speculators who believe the currency will test the 1.19 level against the U.S Dollar, but traders should also acknowledge trading will not be a one-way avenue.
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.
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.