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Tactics and Analysis, July 18, 2017 – Euro’s Path to Success

By:
Yaron Mazor
Published: Jul 18, 2017, 10:46 UTC

The Euro continues to sustain strength against the U.S Dollar. The Euro is testing highs and has broken through important resistance. The European Central

Euro’s Path to Success

The Euro continues to sustain strength against the U.S Dollar. The Euro is testing highs and has broken through important resistance. The European Central Bank meeting on Thursday will be an important factor for Euro investors.

Euro Momentum Powers On

The Euro has continued to power higher against the U.S Dollar and it is now in important territory.

The European currency has enjoyed a significant rise in value since early June. The Euro broke through critical resistance late on Monday and appears to be maintaining its price level above 1.15 against the U.S Dollar.

EUR/USD 1H Chart
EUR/USD 1H Chart

This is a psychologically crucial juncture for investors and with the European Central Bank meeting in the cards this Thursday, and traders need to expect further tests over the next two days.

Upward Path on Display Mid-Term

A look at a mid-term chart for the Euro also displays the currency’s upwards climb against the U.S Dollar. This has occurred as economic data from the European union has improved. And last week’s lackluster inflation number from the States added impetus to the Euro’s strength, this because investors doubt the U.S Federal Reserve’s ability to raise interest rates in the next few months.

EUR/USD 4H Chart
EUR/USD 4H Chart

While the Euro is trading above the 1.15 level against the U.S Dollar, investors may contemplate there is resistance around 1.16 for the currency pair. However, if the Euro should encounter pressure its support level would seem to be around 1.1450 short-term.

Euro’s Long Road to Health

Since December of 2016 the Euro has enjoyed a prosperous road to good health against the U.S Dollar.

After sustaining downside pressures the past couple of years against the U.S Dollar, the Euro has shown a recovery is not only underway, but may be able to be maintained.

EUR/USD Daily Chart
EUR/USD Daily Chart

The coming European Central Bank Press Conference with President Mario Draghi on Thursday will be huge for Euro traders. If President Draghi sounds hawkish about future monetary policy, the Euro could begin to test highs not seen since 2014 when it was trading around 1.20 against the U.S Dollar.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

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.

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