Tactics and Analysis, July 13, 2017 – Euro Seeing Fast Trading as Range Tested

The Euro has seen fast trading early this week as it has tested resistance only to be pushed back to its known range. Next week’s ECB monetary policy meeting is certain to affect trading for the Euro against the USD Dollar too.

Euro’s Tight Range Still Dangerous

The Euro has seen rapid trading the past two days and the quick conditions remain evident.

While the Euro has not been able to break free of its rather tight range against the U.S Dollar, nonetheless the price action within the currency pair has seen plenty of movement as support and resistance levels get tested.

The Euro climbed to within eyesight of the 1.15 resistance level late on Tuesday, but came off its highs yesterday and early this morning appears to be under some slight pressure. However, the Euro’s short-trend remains strong and looks attractive.

The Federal Reserve and European Central Bank

Testimony from U.S Federal Reserve Chairwoman Janet Yellen affected the broad markets yesterday. But, while the Euro and U.S Dollar did see plenty of action, its trading wasn’t necessarily volatile. Traders who are patient enough to hold onto positions will be able to take advantage of the Euro’s consolidated patterns if they seek reversals.

Investors are likely looking forward to the European Central Bank’s meeting next week and this could be a reason the Euro has effectively held its ground.

Euro Reversal Since December of 2016

Economic data from Europe continues to be hopeful. Inflation reports via the Consumer Price Index readings from Germany and France today did meet expectations. Tomorrow Trade Balance numbers will come from the continent.

A look at a long-term chart of the Euro shows the reversal it has been able to achieve since December of 2016. This has taken place as the U.S Federal Reserve has raised interest rates. The clarity from central bank leaders has helped the outlook of investors.

While the Euro appears to be range trading against the U.S Dollar, traders will continue to look for reversal opportunities if it touches technical lows near the 1.14 mark.

In the short term, we believe the 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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