EUR/USD: Euro remains on hold above 1.0500 ahead tomorrow's stormy news

The single European currency is trading just above the 1,05 level in the early hours of Thursday with investors remaining on the sidelines, avoiding taking big bets ahead of tomorrow's very crucial day with the announcement of new jobs in US.

The exchange rate, without any major surprises, remained in a limited fluctuation range near the 1,05 level yesterday without breaking any critical levels.

The characteristic of small reactions of the European currency remained on the table, preventing the American currency from developing any positive momentum again, but something that remains a possible scenario, especially if the upcoming macroeconomic data supports it.

The general market outlook remains the same with geopolitical risks, political instability in the eurozone and the prospects on Fed and ECB about interest rates cuts remaining very high on the agenda.

The interest rate differential gap, which is most likely to remain in favor of the US currency, combined with geopolitical environment and eurozone growth concerns  continue to act as catalysts keeping the US currency in the spotlight.

However, signs of fatigue from the recent rally of the US dollar remain on the table, giving the European currency the opportunity to show signs of resistance, currently remaining well away from the recent lows of 1.0330.

All of this has resulted the pair moving in a consolidation mode in recent days as investors avoid taking large bets, waiting for a new catalyst.

It is likely tomorrow's announcement on new jobs in the United States, if it surprises, could shake the markets very strongly.

Until then, we have today's agenda, which includes Retail Sales in the eurozone and weekly Initial Jobless Claims in US.

No change in my thoughts, I prefer to remain on hold and would like some sharp dip in the recent lows at 1,0330 to attempt a buy position in favor of the European currency.