EUR/USD: The king dollar lost some ground
|After a long period in which the pair had been locked in a limited trading range yesterday was a very interesting trading day and on the occasion of the limitation on Consumer inflation in the United States the euro breaked upward the critical level of 1.03.
The rally was extremely intense after the data was announced as a number of investors with pre-existing short positions began to violently close out their positions at every level.
It was clearly an against dollar behavior and not an event that caused the strengthening of the common European Currency which came from some positive eurozone data . This makes us quite cautious as to how the pair it could sustain the upward momentum for a long period of time.
As we have noticed in previous articles the exchange rate levels were enough low and any fresh news against the dollar could bring the pair back to higher levels very fast.
Although this reaction took the pair a bit further away from the level of 1/1 it cannot be considered that the euro is in an environment of long recovery.
Today's next data regarding producer prices may or may not confirm the de-escalation of inflation in the US economy.
Momentum remains slightly bullish and without any major surprises we may see the pair to test the 1,04-1.0450 level where we expect renewed attempts to sell the euro.
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