Euro Roller Coaster Ride Scaring Traders
The Euro has remained under pressure the past two day. After attaining new highs, the Euro has lost value against the U.S Dollar rapidly and may continue to face headwinds the next two days as technical traders take advantage of its short-term range.
Range Proving Rough for Euro Traders
The Euro has taken traders on an amusement park like the ride this week and has traded in a broad range.
After plowing to new highs on Tuesday, the Euro promptly began to lose value against the U.S Dollar and its sudden weakness has been sustained.
EUR/USD 1H Chart
The Euro is now trading below the 1.19 level and short-term support looks to be around 1.1820.
Nervous Euro Traders Emerging
A mid-term look at the Euro against the U.S Dollar shows its strong trend remains intact
EUR/USD 4H Chart
However, the last two days of trading have likely caused Euro buyers to reconsider their convictions and made them nervous. Yesterday’s strong economic data from the U.S likely added additional concerns to Euro bulls who may be worried about a more hawkish U.S Federal Reserve.
Important U.S. Data Tomorrow Will Affect Euro
Important economic data will come from the U.S tomorrow via jobs numbers and inflation reports.
The Euro is likely to trade in a technical manner leading up to the U.S data tomorrow. And technical traders may take advantage of the Euro against U.S Dollar and position themselves depending on instinct. The Euro may continue to fight headwinds the next twenty-four hours as traders take advantage of its range.
EUR/USD Weekly Chart
In the short term, we believe the Euro may be negative. Mid-term and 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
