EUR/USD: Dollar challenge remains on the table with the euro climbing to new highs above 1,1700
The single European currency continues to remain in the spotlight, taking advantage of the weakness of the American currency, with the exchange rate climbing to the level of 1.17, with a 6-day upward streak.
Fed Chairman Jerome Powell, in his testimony before Congress yesterday, did not bring anything new to the table. The heavy atmosphere between him and the Trump administration appears to be continuing, as there is significant disagreement regarding the Fed's decisions on maintaining interest rates at current levels.
At the same time, the climate of doubt that began with the imposition of high tariffs a few months ago, despite the temporary lull, remains in play, which has affected the US dollar and remains the most important weight for the time being.
The exchange rate seems to be unhooking from the previous familiar trading range between the 1.10 and 1.16 levels, which confirmed recent thoughts as I had given an increased probability to such a scenario.
Investors' attention is now focused on today's announcement on the growth rate of US economy.
Despite the strong upward momentum of the European currency, I will remain close to my strategy and will seek to open positions in favor of the US currency near the 1.18 level as I estimate that before the exchange rate climbs to 1.20 there will be consolidation behaviors and some levels will have to be digested first before the next strong movement.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
