EUR/USD: Euro remains resilient near 1.1650 without big bets and without direction

The single European currency is trading just below the 1.1650 level in the early hours of Wednesday in a mildly bullish environment, having moved well away from recent lows of 1.1540.

Despite the stormy developments with the resurgence of the trade war between the United States and China, the exchange rate remains ''heavy'' without  signs of any specific direction at this time.

The scenario of a strong euro at levels well above 1,20, although it remains on the table, has been removed for now.

Investors continue to remain cautious, avoiding big bets in the currency market as President Trump's controversial personality continues to be a significant risk for the markets, with the phenomenon of continuous new highs for the stock markets now including a significant paradox.

The general picture of the market, despite the stormy developments in the area of geopolitical sfera and trade tariffs, does not show significant differences.

The scenario for two more reductions in key interest rates by  Fed remains the main possibility, with the next move however being quite hazy as inflation continues to worry the Fed and the possible escalation in the tariff issue will certainly not benefit inflationary pressures.

The labor sector in the United States continues to be a question and is currently one of the main headaches .

The return of the US dollar to the forefront and the test of 1.15 fully confirmed my thoughts as expressed in previous articles as I had clearly positioned myself in favor of the US dollar, giving a strong possibility of a good correction, which happened.

However, at this moment, the conditions may not exist for this good correction to develop into a rally in favor of the American currency, as levels below 1.10 now seem very distant and may be difficult to achieve under the current conditions.

So perhaps a scenario of further consolidation near the levels at which the exchange rate has moved in recent weeks remains a good possibility.

In today's agenda, several speeches by Fed officials stand out, as there is nothing important in terms of macroeconomic figures.

So I would prefer to remain on hold at current levels.