EUR/USD: Euro remains firmly above 1,1500 after yesterday's rebound

The single European currency is trading between 1.15 and 1.1550 levels in the early hours of Friday in a soft trading tone, trying to maintain distance from Wednesday's lows at 1.470, which proved to be an important support for the exchange rate.

If the European currency fails to stay above the 1.1530 level, it will be the third consecutive week in which it will close with losses, confirming that the strong upward momentum is now far away.

As Chairman Powell's rhetoric has changed slightly and aggressive interest rates cuts for the coming months are no longer on the table, the US currency has found significant support in the last 2-3 weeks, but questions remain as to whether, beyond the very good correction, it will be able to develop a momentum that will lead to a rally.

The latest developments with sell-off in US stock markets have brought some doubt to the US currency. Together with a concern about the labor sector, may will be creating a more doubts for the dollar.

Of course, let's not forget that the US currency has not yet lost its characteristic as a safe haven currency and in the event of a collapse in the financial markets, it is not ruled out that investors will turn again to the US currency and US debt.

So in general the messages are mixed as there are significant reasons for the critical level of 1.1450 to fall and see even lower prices for the pair, but on the other hand there are also reasons for the euro to defend current levels and return again close to the recent highs of 1.1920.

This mixed environment raises the odds of a consolidation scenario where, at least for today, there will be no significant changes and no critical levels will be broken.

The continued US government lockdown continues to age the work of analysts as important statistical data is not available.

Today's agenda is quite rich with several statements from ECB and Fed officials, as well as the University of Michigan's consumer confidence index, which investors always follow with interest, while regarding new jobs, the question remains when they will be available.

As the exchange rate correction approached almost 500 basis points but the critical level of 1.1450 was not broken, I will remain on the wait-and-see stance, expecting significantly lower levels for the possibility of buying the euro.