EUR/USD: Euro remains calm below 1.0500 level looking for the trigger for the next move
|The single European currency fell slightly in the early morning trading hours of Tuesday, having moved away from the 1.05 level as, as was quite expected, the continuation of the rise of the European currency was soon put under question.
Yesterday, with markets closed in the United States for President's Day, there were no surprises and the range remained extremely narrow near the 1.05 level.
The overall market picture does not show significant differences, the trading pattern of recent weeks remains on the table and there are some good chances for this scenario to continue.
The European currency, apart from some good reactions, having difficulty developing a strong upward momentum and the return to levels close to 1,08 in the near future remains a very difficult challenge, while on the other hand, the approach close to the levels of 1/1 is likely to continue to provide opportunities for long positions in favor the European currency.
The market has pretty much digested the foggy situation surrounding President Trump's tariff imposition, having recognized that the element of surprises will accompany the Trump presidency.
These thoughts have so far kept investors away from taking big bets, maintaining a fairly conservative stance.
Today's agenda is relatively poor and the only thing that stands out is ZEW Institute's research on the sentiment of the German economy.
I see no significant reasons to change my strategy and I will remain in favor of buy the Euro on dips below the recent lows and correspondingly I would like levels close to 1.07 for the possibility of buying the US dollar.
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