Euro Bounces to New Highs
The Euro has enjoyed a solid bounce higher and is above important short term resistance levels. The question now, per its value around 1.2225 is if the European currency can finally sustain its momentum, or will it suffer another reversal?
The Euro has found it hard to stay above the 1.21 level for a prolonged amount of time against the U.S Dollar, but this time may be different over the long haul.
A Bullish Combination for Euro
The combination of last week’s European Central Bank Monetary Policy Meeting Accounts paper, and weak inflation data from the U.S before going into the weekend has served as a bullish catalyst.
The Euro climbed on Thursday and then sustained its momentum on Friday, and is resting near a critical juncture in which speculators will have to consider their short term fears against their mid-term expectations.
More Value to Come from the Euro?
The European Union has been producing better economic data and it appears a tightening of quantitative easing will be sounded from the ECB in the mid-term.
While the U.S Federal Reserve will undergo a shift of leadership in February, it may not mean the U.S Dollar has to get stronger. And traders may want to continue to buy the Euro with the prospect of more value to come.
In the short term and mid-term, we believe the Euro may be positive. In the long-term we are unbiased.