EUR/USD: Buying the US currency at 1.1000 and above may be a good idea for now

The single European currency is currently quite easily maintaining levels near 1,0950, but it looks really difficult task to approach the critical psychological level of 1,10.

I remind the last articles which I noted that the continuation of the strong upward momentum of the European currency would be a difficult task and the scenario of fatigue and ''digesting''  the levels above and below 1,09 was the most likely.

The behavior of the market justified this thought as indeed we are already in the seventh day where the exchange rate has been quite ''heavy'' with the trading range limited near the levels of 1,09.

This has also been helped by the economic agendas of the last few days, which not only were poor, but whatever was announced did not surprise and was generally within the estimates.

Investors are clearly taking a wait-and-see attitude and are awaiting a major catalyst that will act as a trigger for the next big move in the exchange rate.

Such a catalyst could become on the table from pressures on the International stock markets which despite the temporarly de-escalation on the Middle East front are showing signs of fatigue and after the easy return of the S&P barometer index to the levels of 4,500, further rise does not look easy.

Such a scenario would increase the need to buy dollars which traditionally functions as a safe haven currency with the consequence that the European currency would once again come under pressures retreating to lower prices.

In any case, the course of the exchange rate continues to be completely dependent on economic announcements and speeches from officials, which today, apart from the Consumer Confidence Index in the United States and some statements by monetary policy officials from the two main central banks, there is nothing else on the agenda.

The following days of the week which include on the agenda data on the course of inflation on both sides of the Atlantic are expected with interest and this data are able to give some direction and the exchange rate to escape from the limited ranges of the last few days.

I continue to maintain the view that buying the US currency at 1,10 and above may be the best idea for now.