EUR/USD: Euro trades near 1.1650 as mild rise is under challenge
The single European currency is trading near the 1.1650 area on the last day of the week, trying to preserve the weekly gains, which were limited in scope.
For another week, the range of fluctuation was limited and remained close to 100 basis points, with the European currency however remaining in the spotlight and is very near to closing with small gains for second week in a row.
Investors continue to have the upcoming Fed meeting high on the agenda, with a 25 basis point rates cut currently the main scenario.
The upcoming Fed decision is currently the main obstacle for the US currency returning to an upward momentum despite the good US macroeconomic data that has seen the light of day in recent days.
In general, the market picture does not show significant differences, with investors remaining cautious and avoiding big bets, and the recent small rise in the European currency is difficult to consider at this time as the beginning of a significant new trend.
That the picture will remain the same until the Fed meeting is the base scenario at this time and we would hardly see any major surprises with some critical levels to be broken.
The European currency has now moved well away from the critical level of 1.1450, partially confirming my thoughts as they were reflected in previous articles and the desire to buy the European currency, but I failed to find the right entry point as I expected possible levels well below 1.1450.
At the moment I don't see anything different. I prefer to remain in the same thoughts and remain in a waiting position, especially in view of the crucial Fed meeting.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
