EUR/USD: Consolidation mode near 1.1800 is in play with further rise being a challenge
|The single European currency is falling marginally below the level of 1.18 as after a continuous upward streak the first signs of fatigue are now evident and climbing to the levels of 1.20 will not be an easy task for the very near future.
The US dollar continues to be under question with the ongoing dispute between Fed's President Powell and President Trump leaving visible signs in the course of the exchange rate and putting the course of the US dollar in further question.
At the same time, with the exception of the Ukrainian front, which continues to be active, the broader geopolitical environment has limited the risks, especially after the ceasefire in the Persian Gulf.
This development has removed from the table the need for purchases in the US currency, which traditionally functioned as a safe haven currency, although recently there has been a strong observation that this characteristic has lost its luster.
Monetary policy continues to be in favor of the US currency as the interest rate differential remains clearly in favor of the dollar, but something that has not managed to act as a bulwark against the decline of the US currency.
On today's agenda, the speech of President Christine Lagarde and the first preliminary data on the labor sector in the United States stand out, which of course will culminate on Friday when new jobs in the US for the month of June will be announced.
With the exchange rate reaching and exceeding the levels of 1,18, my idea of buying the US currency at these levels has now been realized, which I maintain as I estimate that there will be a consolidation mode and the exchange rate should digest some levels with a good chance of correction before climbing to the next challenge of 1.20.
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