Let's start with the Euro today and then, you might want to read about Italy’s possible innovation, which can be the next big thing in Europe and the world.
Earlier this week, the Euro shocked the banks around the world, rising well above 1.20 mark, the level most of the investment banks considered it would take more than 5 years for the Euro to reach.
Well, the Euro managed to recover above that key resistance for the first time since January of 2015, reaching as high as 1.2065.
However, the Euro eased back once again below 1.20 and continued to decline all the way to 1.1866 earlier this morning.
What's Happening?
First of all, trading is not about a one-way trend; every rally will be followed by a retracement, whether on the short or the long term and vice versa.
Moreover, we have been warning about over reacting in shorting the US Dollar index over the past few days, especially that the index was trading near a long-term support area, which remains solid since January 2015.
The area stands between 93.0 and 91.80. Earlier this week, the index declined all the way to 91.60 before it spikes all the way back to as high as 93.0.
The Dollar Index remains within the same area, which means that we are still uncertain whether if it is able to hold and start rising again, or it breaks lower.
The key for the next move is the US Jobs Report which should be watched very carefully. But once again, do not overreact to the data.
Read more: https://www.orbex.com/blog/2017/08/euro-drops-below-1-20-does-italy-need-rarallel-currency