EUR/USD: Euro soars again above 1.1600 level on a potential calm between Israel and Iran

The single European currency maintains its mild positive momentum in the wake of developments in the Persian Gulf where, after the intense concern of the previous days, a temporary ceasefire has been agreed upon, bringing optimism back to the markets with oil prices falling dramatically.

The US currency had failed to play the role of a safe haven currency and the Euro decline near 1.14 level  in recent days certainly cannot be considered a significant step for the US dollar.

Geopolitical developments, with the dominant image of recent days being the dramatic developments in the Persian Gulf with the military confrontation between Israel and the Iranian regime, remain very high on the investors' agenda.

The Ukrainian front, although it remains active, has begun to fade, but the dangers remain open in this region of the planet.

Τhe single European currency has maintained a consolidation behavior for the last three weeks between levels 1,14 and 1,16.

The American currency, although it continues to offer higher interest rates, beyond some corrections has been unable to return to the spotlight with President Donald Trump's policies and controversial personality having significantly damaged the credibility of the dollar.

The likelihood of the European currency moving even higher has increased as the consolidation behavior of recent weeks appears to be coming to an end.

Today's agenda is relatively poor in macroeconomic news, with interest focused on statements by Fed officials and geopolitical developments, as history has shown that several ceasefire agreements have proven to be only temporary.

I remain on hold, expecting possible levels near 1.1750 to 1.18 for the possibility of buying the US dollar as I estimate that there will be conditions for further  market consolidation and the pair it will not be easy to climb to 1.20 without first digesting some levels.