Euro Loses Its Momentum against Dollar
By Anatol Thomas
In the past few days, Euro, which was losing against the dollar picked up some pace and reached its 3-week high on Thursday. However, the rally appears to have ended as the Euro steadied against the USD. The currency is ready for congested positioning as it exhibited a short term movement in the upward direction since December 2016.
The inflection point currently experienced is in the range of 1.0682, but experts predict that the value may fall anywhere between 1.0570 and 1.0590 in the upcoming few days. Resistance is experienced at 38.2% and 50%.
Traders were able to stop a breakeven after the initial profits were booked. The active trading at 1.0684 enabled the traders to lock in the profits. The current positioning of the currency is not suitable to initiate a profitable trade while the investors are interested in the sideward movement.
When the currency was rallying there was noteworthy buying pressure in the market. Shorting the market is not a choice for traders because of the resistance at 1.2750 level. Experienced economists prefer the upward trend of the Euro so that the market remains attractive.
The market for Euro is expected to go higher in the long term. The short term trends are choppy at best, but shorting out is not chosen by many experienced traders. When the prices vary so much so that congestion is relieved in the market, traders will be eager to jump on the actionable setup to start profitable trading.
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