Euro Acting Like Its Halloween

The Euro continues to cause a fright for investors and maybe that is appropriate since it is Halloween tomorrow. The Euro continues to be tested near important support levels and has not produced an upward reversal in the short-term.

Euro Trading Slightly Above Important Support

The Euro continues to trade near important support against the U.S Dollar after being taken to fresh lows on Friday when the European currency hit 1.1580.

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

The Euro is near 1.1620 now and continues to display weakened behavior. This has occurred in the aftermath of a better than expected growth number via the Gross Domestic Product outcome from the States before going into the weekend.

A Lack of Speculative Buyers

While the Euro has gained early this morning its results are not enough to signal a buyers’ parade for speculators. Most investors do not believe the U.S Federal Reserve will raise interest rates this Wednesday, but there is enough ammunition surrounding the central bank to cause nervousness in forex.

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

The additional factor that a new Federal Reserve Chairman is likely to be named this week who will start the job in February of 2018, has delivered weakness for the Euro against the U.S Dollar.

A Weaker and Better Euro for the E.U?

Let’s also remember the European Central Bank may view a slightly weakened Euro as a potentially good thing for the overall European economy, because of its ability to create better export demand.

Although long-term factors would seem to point to a higher valued Euro, the near-term downside pressure on the currency cannot be discounted and traders may look for lower values in the coming days.

EUR/USD Daily Chart
EUR/USD Daily Chart

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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Yaron Mazor

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. Ten years ago, Yaron sold all of his businesses and became a trader. Yaron started an education provider that taught thousands of people worldwide how to trade. Since then, he has traded every single day across every imaginable financial instrument Organic Trading System (OTS) is an unprecedented, new paradigm of trading technique, developed by Yaron Mazor. The trading system utilizes a combination of essential resources of market data (Fundamental, market participant sentiment and the basic concepts of trends), which are harmonically coordinated, in order to enable a relatively fast, simple and easy way to decide which side of the market to be trading from – the Buy side or the Sell side.