EUR/USD: Euro touches 1.0600 level on a mild positive mode but further gains are a challenge

The single European currency is trading at the threshold of 1,06 level, maintaining a mild positive momentum during the early hours of Friday morning, but already the disappointing data on retail sales in Germany puts further gains in question.

The exchange rate remained in a narrow range during yesterday's trading session as expected as many traders avoided placing any bets due to the Thanksgiving holiday in the United States.

The inflation data for the German economy that was announced kept the concerns on the table as the data were lower than estimates which, combined with the economic growth rates, keep on the agenda the ghost of a possible stagflation .

Despite the signs of resistance that the European currency continues to show, the general picture of the market remains the same, with geopolitical risks remaining high and the prospects of interest rate cuts monopolizing investors' interest.

Even from the first hours of the ceasefire agreement between Israel and Hezbollah began, signs of ceasefire violations were being observed.

While there are no signs of de-escalation on the Ukrainian front with the risk of the Planet finding itself in uncharted waters to remains high.

The further decline in yields on US government debt securities for another day supported the reaction of the European currency with the 10-year yield already approaching the level of 4.2.

Today's agenda remains non-existent on the other side of the Atlantic in the wake of Thanksgiving but has plenty of interest on the Old Continent with eurozone inflation data standing out.

The European currency is holding well away from the recent lows of 1.0330 but the risks of new pressures remain on the table.

The behavior of the exchange rate in recent days has fully confirmed my thoughts as expressed in previous articles, having specifically emphasized that the recent rally of the US currency will soon show signs of fatigue.

That's why I was clearly in favor of the strategy of buying the European currency on dips with the aim of corrections.

I remain in a wait-and-see position at these levels, maintaining the idea of ​​buying the European currency on some new dips near the recent lows.