EUR/USD: New mild pressures on the Euro after the rebound
|The single European currency is again under mild pressure in the early hours of Thursday after earlier hitting the 1,07 threshold following a recovery from yesterday's lows of 1,0635.
Τhe behavior of the market during yesterday fully confirmed my thinking as expressed in yesterday's article as the European currency found indeed good support at the 1.0620-40 level and its familiar behavior of reacting after new lows remained in the game.
Τhe main catalyst for the new pressures that Euro's received yesterday was the de-escalation of inflationary pressures from the main economies of the Eurozone, which is likely to lead the European Central Bank to reduce the aggressive rhetoric.
For this reason, the announcement later in the day on the course of inflation in the entire Eurozone is expected with particular interest and a significant reduction in prices is likely to lead to a new cycle of pressure for the European currency.
The house of representatives ratified the agreement to increase the US debt limit which was under a lot of discussion but basically no serious thought expected something different.
The general picture of the market remains relatively the same, with the European currency remaining under mild pressures but without showing signs of collapse.
While one of the key features of reacting to pressures - especially when it makes new lows - remains in the foreground with excellent fidelity.
And today's agenda is extremely rich with the path of inflation in the eurozone standing out.
In view of tomorrow's announcement on the new jobs in the United States which is traditionally one of the economic news that strongly moves the currency market I would avoid keeping open positions at these levels.
But without forgetting my basic strategy of buying the European currency at new local lows.
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