EUR/USD: Euro under mild pressures ahead Eurozone GDP
|The single European currency has fallen well below the 1,05 level as the pair finds itself in a mild pressure environment.
As i mentioned in previous articles, the European currency could not find the corresponding catalysts to refuel the upward momentum of the last weeks.
The agresive rhetoric from European Central Bank officials that inflationary pressures remain high and the Ecb should act accordingly has been muted in recent days and many officials believe interest rates are set to peak very soon.
While at the same time we also had some announcements about some data of the European economy that showed a little disappointment.
In such an environment it was quite expected that the European currency would show significant signs of fatigue and the high levels near 1,06 to which it had climbed the last days would came under doubts.
Today's announcement later in the day on the development path of the eurozone is expected with great interest and possibly if it disappoints the latest pressure on the European currency is likely to take on a further extent.
The last thoughts expressed in the previous articles that the chances of the pair correcting are high have been confirmed and I will stay on these thoughts as I estimate that if there is no positive surprise in the Eurozone GDP announcement this correction will continue . At the moment the return to 1,06 level looks difficult.
But in any case I will not deviate from my favorite strategy of the last few months to buy the European currency on every dip as the reaction and bullish behavior of the Euro follows with great fidelity and has not disappointed so far.
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