Tactics and Analysis, July 18, 2017 – 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.
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.
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.
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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This article was originally posted on FX Empire