EUR/USD: Euro still on rebound mode
|The common European currency continues to be in recovery mode as it has already approached 0.99 level.
Positive sentiment has returned to the stock markets and this has reduced the needs to buy the safe-haven dollar.
For the second day in a row , the main barometer indices S&P and Eurostoxx are posting gains.
Despite the disappointing news about the course of manufacturing activity in the US economy that was announced yesterday , the market ignored it and the main stock indices moved strongly upwards.
After a sharp fall in September several investors showed their willingness to position themselves from the beginning of the new month at the low levels that had already formed .
The question is whether the last major reaction of the euro and the stock markets will last.
Despite the latest reaction prices continue to be low and the euro exchange rate continues to be below the critical level of 1/1.
The speech later in the day by the president of the European Central Bank, Christine Lagarde, is expected again with interest from investors.
The broader picture of the exchange rate it does not appear to have major changes and despite the recent upward reaction the pair continues to be in downtrend channel that has started since May 2021 from the levels of 1,22.
The upper end of this channel is close to the 1.0150 level , something that i think is very difficult at the present time to be able to break it upwards.
As the main causes that sent the euro down continue to be in the foreground the chances of new pressures remain.
I would prefer to keep a neutral position as the pair is right in the middle of this channel and I would remain faithful to the basic strategy of buying the Euro on dips which has not disappointed so far.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.