EUR/USD: Euro struggles to maintain gains
|The common European currency moves around to 0,99 levels after the new reaction in the wake of yesterday's heavy losses.
As we mentioned in the previous article, the exchange rate was in the middle of the downtrend channel which has started since May 2021.
The strong upward movement of the previous days with which the pair returned to its threshold 1/1, after a significant reaction of about 500 basis points brought some balance and this was expected and had been reported several times here.
Volatility which has strengthened and the trading range is widening, It is a sign of intense confusion as diferent counterweights act on the pair.
As we have mentioned, a set of data that weigh on the single European currency have been largely digested by the markets, this is why the last reaction of the euro was supported.
Although we had a strong view on the return of pair very soon to the levels of 1/1, this surprised even us with the very rapid speed with which it was achieved.
As it turned out the exchange rate had been under a lot of pressure and losses of 500 basis points below 1/1 turned out to be an excellent opportunity for those who believed in buying the euro.
The picture continues to have a large amount of confusion as macroeconomic data continues to be reported with a mixed picture and European continent continues to receive the biggest problems from the energy and geopolitical crisis.
But as we have mentioned these are largely digested by the markets and in the same time in the American continent the developments are not the best as the concerns about how much the growth will be limited continue to be in the foreground.
In such an environment I see intense volatility to be the main scenario, the pair will find it difficult to go much higher than 1/1 at the moment and i expect new dips to renew my strategy '' buy on new dips " which has not disappointed me.
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