The Euro continues to stay volatile. Yesterday’s referendum vote in Spain among Catalonia voters has caused angst among European investors. The Euro is testing mid-term lows, but its outlook remains optimistic for patient investors.
Euro Causing Pain for Traders Short Term
The Euro has continued to face pressure. The European currency gained on reversals before going into the weekend. But unfortunately for short-term buyers, the Euro has declined again this morning and is well below 1.18 against the U.S Dollar.
The storms surrounding the Euro today have been caused primarily by the referendum vote in Catalonia yesterday, which painted an ugly picture in the mind of investors because of worries about Spain.
Mid-Term Worries as Lows Approach
The Euro is now testing mid-term support and should be watched carefully. If the Euro falls below the 1.17 level against the U.S Dollar this will open the door for speculative traders.
Yes, the Euro is under pressure, but if it continues to be beaten down – traders may look at the currency as a good mid-term buying opportunity.
Long-Term Outlook Still Bright
The Euro has done well against the U.S Dollar since December of 2016, and there is the reason to think long-term it will gain further.
However, current trading conditions are dangerous for the Euro, and it may continue to face some headwinds this week against the U.S Dollar. Important support is near 1.1680 for the European currency.
In the short term, we believe the Euro may be positive. Mid-term and Long-term we are positive too.
Yaron Mazor is a senior analyst at SuperTraderTV.
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