EUR/USD: Sell on peaks, buy on dips
|The single European currency is trying to recover yesterday's lost ground and return again above the level of 1,09.
As i expected and very aptly noted in yesterday's article indeed yesterday the single European currency could not maintain its gains and after the highs of 1,0920 it fell well below the level of 1,08.
However, this correction was short-lived and today's market picture is back again in favor of the European currency which is in limited upward momentum.
The general picture of the market remains under particular confusion as the European currency has climbed to quite high levels nevertheless it seems that the potential for further rise is quite limited while every time new peaks are noted the corrections come with quite high fidelity.
The feed of new data is not much differentiated as the officials of the European Central Bank Continue the aggressive rhetoric which of course supports the current levels of the European currency.
At the same time, the large de-escalation in natural gas prices, which yesterday reached new lows from May 2021, supports a more positive climate for the Eurozone economy, greatly removing the possibility of a recession that was rocking the European continent during the summer months.
On the other hand the US Federal central bank have entered into a slow down behavior on next interest rate hikes.
But it is important not to forget that even this development keeps key interest rates in favor of the US dollar, with debt yields although they have slowed down in their attractiveness they remain more competitive.
From today's agenda research about the path of economic activity in the eurozone stands out, which may create some temporary direction for the pair.
Overall I don't see any major reason to change my strategy to buy the US currency at new peaks which yesterday once again did not disappoint.
While I would expect a deep and intense dive of the European currency to consider as attractive levels for buying positions.
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.