EUR/USD: Euro remains below but near to 1,1700 level as upward momentum is on hold

The single European currency continues to suffer mild losses and remains below  1.17 level as the strong upward momentum of the previous weeks has shown signs of fatigue and further rise remains a challenge.

The market behavior of the last 8 days continues to confirm my thoughts as they were reflected in previous articles as the consolidation behavior remains on the table and before will be an attempt to target the 1.20 levels, the most logical thing was for the exchange rate to first digest the current levels.

The single European currency is significantly higher at the beginning of the second half of the year compared to the prices it was on January 25, with investors withdrawing from the US dollar mainly due to the enigmatic personality and controversial policies of President Donald Trump.

The yields on US government debt securities have indeed fallen from the high peaks of January 2025, but they remain at attractive levels, without however being able to act as a bulwark against the sharp losses of the US dollar in the first half of 2025.

In any case, as the exchange rate is likely to approach the levels of 1.20 or even in current levels, many investors are likely to redefine their strategy by choosing currencies with higher interest rates, especially since they have depreciated considerably in recent months.

The issue of trade tariffs and the geopolitical landscape remains high on investors' agendas, with developments regarding potential agreements between the United States and other trading partners dominating the news.

Today's agenda is relatively poor without any high-profile news and the probability that the exchange rate will remain not very far from the  recent levels is good.

I don't have any significant change in my thinking, consolidation behavior will likely remain in play for a while longer, but I would prefer to lock in most of the profits from the US currency position from  1.18 levels.