Tactics and Analysis, August 16, 2017 – Euro Slide May Prove Worthwhile

The Euro has lost value the past week against the U.S Dollar. However, it remains within the stronger boundaries of it long term range and traders may have an opportunity to look for reversals upward in the near term against the U.S Dollar.

Euro Has Fallen Short Term

The Euro’s recent slide the past week is becoming increasingly interesting to traders.

Early this morning the Euro touched new short-term lows against the U.S Dollar, but has managed to show an ability to bounce higher.

The 1.17 level appears to be very important support for the Euro against the U.S Dollar, while resistance is 1.18.

Euro Taking a Pause?

A look at a mid-term chart shows that the Euro’s path to higher values has seen it consolidate – resting every once in a while, as investors have gathered more confidence to push the European currency forward.

The U.S Federal Reserve continues to speak about a lack of inflation in the U.S economy, and until the U.S central bank changes their viewpoint, they are unlikely to raise interest rates again.

Sharp Selloff is a Clue

The Euro has certainly seen a sell off the past week, but it is still within the strongest part of its long-term range against the U.S Dollar.

Traders will need patience, but if they have a speculative taste, there may be an opportunity to take advantage of the recent pressure the Euro has experienced before it tries to make another climb against the U.S Dollar in the near term.

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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