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Euro Developing into Intriguing Proposition

Yaron Mazor

The Euro continues to experience headwinds in the short term as traders remain cautious due to knock-on effects from the Pound as political concerns remain about the Brexit. However, the Euro is intriguing moving forward and may find buyers who believe it should be valued higher.

Euro Intriguing Moving Forward

In the short term, the Euro continues to look like a currency under pressure as it trades under the 1.18 level against the U.S Dollar.

EUR/USD 1H Chart

However, the Euro has shown the ability to trade above the 1.18 mark several times recently and is a very interesting proposition moving forward.

Euro has Experienced Higher Values

A look at a mid-term chart clearly shows that the Euro has recently tested higher values, only to be pushed down by resistance. But some of the volatility in the Euro has been a knock-on effect caused by the volatility in the Pound – because of political hijinks in Britain.

EUR/USD 4H Chart

The European Union’s economy has consistently posted better data the past few months and its outlook has improved.

Capability of Finding Euro Buyers

The European Central Bank will announce their monetary policy on Thursday, and while President Mario Draghi is expected to sound cautious, we expect that he will also subtly hint Europe’s growth prospects will build.

The Euro has the capability of finding additional buyers via investors and speculators in the coming days who may think the 1.19 level is a potential target.

EUR/USD Daily Chart

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire

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