EUR/USD: Euro is proving quite resilient, already secured the 1.0400 level

The single European currency once again shows its ability to react, having moved well away from Monday's lows, fully covering the gap at the opening of Asia at the beginning of the new week in the wake of President Trump's announcements on the imposition of tariffs.

The high level of speculation is the main feature of the last few days as the data, as it turned out, changes from one moment to the next, which greatly increases volatility, making investors quite cautious about placing large bets.

In general, despite the high volatility, the overall picture of the market does not show significant differences, fully confirming my thoughts as they were expressed in a previous article, as I had given a good chance to the scenario that the pattern of recent weeks will remain on the table.

The strategy of buying the European currency on dips has once again proven to be a good idea, with the European currency already return back almost 200 basis points above Monday's lows.

On the other hand, let's not forget that the main catalysts that acted as a drag on the European currency over the past four months, resulting  the euro suffering significant losses, have not been removed from the table.

Geopolitical risks show signs of shrinking, but as long as the Ukrainian front remains open, the possibility of an ''accident'', even if it is smaller, remains on the table.

The interest rate gap remain in favor of the US currency as there no any surprise in the game. 

While the possibility of political instability in  Europe, especial in  Germany , along with the sluggish growth of the European economy, still remain on the agenda.

Today's agenda is quite rich with a multitude of macroeconomic announcements and statements by Fed officials. 

Of course, let's not forget that we are in the week that ends with the announcement of new jobs in the United States, which often acts as a game changer.

There may be a small chance of significant changes compared to the pattern of recent days, the European currency may remain under question and find it difficult to maintain its upward momentum, while on the other hand, whenever it approaches 1/1, it shows the ability to react.

So there is no change in my thinking with buying on dips remaining my basic strategy.