EUR/USD: In a range trading before re-approach 1/1?
In a limited range of variation below the 1,02 level deals the common European currency, having mild downtrends momentum with corrections.
Day is of great interest as the announcement of the growth path of the European economy is expected and then the minutes from the last Fed's meeting.
From Fed's minutes may we will get some more information about the intentions of the central bank officials for the path of interest rate increases in the next meetings.
The shadow of the ghost of possible stagflation continues to loom over the European economy mainly due to the energy crisis.
However, significant optimism is visible on the horizon from the last significant de-escalation in oil prices, which has already slipped to 86 dollars.
A large portion of analysts expects the worst for the rest of the year, a very difficult winter for the European economy, we would not fully adopt these pessimistic views as we are expecting a more optimistic scenario especially in the matter of energy prices.
Although the possibility of the common European currency falling back below parity is high, perhaps signaling new lows beyond the 0.9950 level, the reactions will be expected and quite significant creating a good scenario for buying strategies in market dips which has absolutely confirmed in recent weeks.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
