EUR/USD: Euro's mild upward momentum it under intense challenge
|The single European currency is under intense pressure during the early morning hours of Thursday.
The single currency has retreated significantly from the levels of 1,10 which it managed to approach temporarily during yesterday after the announcement of the inflation data in the US.
Yesterday's announcement did not surprise markets as the de-escalation of inflationary pressures is at a tipping point.
However, even this small decline in Consumer price index temporarily pressured the US currency as it failed to fuel and reinforce very small bets on another hike in key interest rates from the Fed's side.
The behavior of the market during the day yesterday broadly confirmed my thinking as expressed in yesterday's article , the range remained between the 1,09 and 1,10 levels and the mixed picture remains on the table.
Τoday's losses of the European currency confirm once again that the mild momentum that the European currency had recently developed is easily called into question as the well-known aggressive rhetoric of the European Central Bank does not seem capable of sustaining and giving new momentum to the European currency.
Οn the other hand, as it has shown in the past, the European currency finds its supports, maintains significant strength and has the ability to react strongly and quickly whenever it is under intense pressure.
Βut having already digested for several days the levels on either side of 1,10 , the possibility of having some significant changes increases and the dive which the European currency is currently receiving perhaps it will also lead it to new local lows.
Today's agenda is almost non-existent from European news while on the US side limited to the producer price index and weekly jobless claims.
The market picture remains broadly the same the pair remains under confusion as it struggles to find any specific direction and my thinking of sticking to my core strategy has not changed.
Trying to follow the pulse of the market , as the dips in the European currency create lower local lows with the result that a down break this time of 1,09 level and below has some increased probability.
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