EUR/USD: Euro on defensive mode near 1.1150 level after a choppy Tuesday

New effort for the single European currency to develop a mild momentum trying to absorb some of yesterday's losses where in a day of significant pitfalls volatility were the main feature.

The single European currency strengthened by the news from China where the central bank in an attempt to help the economy announced some support measures, the euro took advantage of the positive sentiment in the markets and temporarily broke the critical 1,12 level upwards.

Very soon, however, the bull market came under intense doubt, the American currency went on the counterattack, registering gains for the day, with the euro retreating again close to the threshold of 1.11.

The behavior of the market during yesterday fully confirmed my thoughts as expressed in previous articles as indeed the continuation of the upward momentum of the European currency proved to be not an easy task.

As I mentioned in yesterday's article the exchange rate continues to be ''heavy'' and despite some peaks or at the other side some sharp dips the general picture has not changed significantly.

Today's agenda is extremely interesting with the statements by Christine Lagarde & Jerome Powell standing out.

Along with quite interesting macroeconomic data as growth path in USA is announced, together with  Durable Goods orders and  the weekly jobless claims.

Although there is some distance from the next Fed and  ECB  meetings, bets on the intentions of further reduction of interest rates continue to monopolize the interest and influence the course of the exchange rate.

Although the gap in the difference in interest rates has narrowed after the latest reduction of 50 basis points by  Fed, the difference remains in favor of the American currency, and along with the concern about the course of the European economy remains at the moment the two main weights in the effort of the European currency to move much higher approaching the levels of 1.14 - 1.15, which in my view may be the higher prices ​​that the European currency could achieve until the end of 2024.

I remain on hold as yesterday's peak in the European currency did not approach the levels near 1,1250 which I would preferred for buy the US Dollar.