The Euro is trading above the 1.23 mark against the U.S Dollar cautiously before the U.S inflation numbers are released today and tomorrow.
Sudden Bursts Higher Followed by Pratfalls
Trading the Euro against the U.S Dollar has proven a difficult task, the forex pair has been packed with sudden bursts upwards and followed by pratfalls. The Euro is now above the 1.23 level which puts it squarely within the center of its mid-term range.
Support for the Euro appears to be the 1.22 juncture, while resistance is perceptible around the 1.2450 ratios.
Upside Potential for Euro Enticing
Today’s Producer Price Index and the Consumer Price Index numbers tomorrow will certainly impact forex. The question is if the U.S inflation numbers will be stronger than expected or remain lackluster. If the results are lackluster the Euro could surge against the U.S Dollar near term.
The Euro has been in a steady channel versus the U.S Dollar since January and there is little reason for it to vacate these value levels, but speculators may remain enticed by potential upside opportunities.
In the short term, we believe the Euro could be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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