EurDollar Notes

Lackluster U.S Inflation could be Catalyst for the EUR/USD

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.

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

Support for the Euro appears to be the 1.22 juncture, while resistance is perceptible around the 1.2450 ratios.

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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.

EUR/USD Daily Chart
EUR/USD Daily Chart

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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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.