The Euro continues to attract buyers. It made big gains against the U.S Dollar after the Federal Reserve’s rather dovish policy statement on Wednesday. Resistance levels have been broken through by the upwards advance of the Euro and it is trading near highs made a couple of years ago.
Euro Testing High Water Marks
The Euro has climbed into an important trading range, after breaking through important resistance levels against the U.S Dollar late on Wednesday.
The Euro is traversing above the 1.17 level and has the attention of traders.
The rather unaggressive U.S Federal Reserve monetary policy statement yesterday, has sparked new buying among Euro investors. And the 1.18 level against the U.S Dollar is the next important resistance level which could be tested.
Euro’s Convincing Run Upwards
The Euro’s mid-term trend has been nothing short of convincing. The European currency has fought back versus all downturns and has continued to power higher.
The belief the U.S Federal Reserve will be less aggressive regarding interest rates, and the notion the European Central Bank will start to tighten its policy has fueled Euro speculation.
Long Term Shows Crude Oil’s Consolidation
A look at a long-term chart shows a major recalibration of the Euro may be underway. The currency still will have to fight higher to be considered back to what were standard values for the currency five years ago, but it is creeping towards important price junctures.
If the Euro continues to gain against the U.S Dollar it will continue to build on solid market sentiment, which believes the European Union is returning to better economic conditions.
In the short term, we believe the Euro may be positive. Mid-term and Long-term we are unbiased.