The Euro, the official currency of the European Union, is one of the most widely traded currencies in the world, if only for the fact that Europe is one of the most active grounds for business. Only the U.S. dollar, the British pound, and the Japanese yen see anywhere near the same amount of trading activity in the Forex market. If you wish to trade the Euro, the factors that you will be looking at will be slightly different and more complex than the other three currencies. This is because the European Union consists of more than one nation, and thus a more collective approach to interpreting data is needed to take this into account.
The news coming out of a single country can affect the Euro’s value in the international market. With current debt crises in Greece and Italy, the Euro has declined in value—despite the fact that other European nations are doing quite well. Because the Euro is a communal currency for the European nations, you need to do a lot more work when researching it. As you can see with Greece and Italy, looking at only some nations’ economic outlook can give you a biased—and incorrect—view of where the Euro is headed.
The approach that most people take when trading the Euro is simply to look at the technical indicators that are reflected in price charts. This is too simplified. The Euro is the most complex major currency traded, and as such, requires a fundamental approach in addition to the normal technical approach. Trading the news and using Straddle Trader Pro may help you as well.