EUR/USD: The Euro holds on some gains but corrections still on play

The single European currency maintains a very mild upward momentum and today as it once again tried to approach the level of 1,06.

In a week that is going towards the end the pair traded in a very tight range of just 150 basis points throughout the week with the European currency seeing marginal gains if current levels are maintained.

The European currency has found strong support from the significant de-escalation of energy prices as well as oil and natural gas have declined significantly recently.

The European economy which received the biggest shocks due to the developments on the Ukraine front with the energy crisis and high inflation rates creating an explosive cocktail, for a long time was the main weight for the European currency.

The latest significant de-escalation in energy prices appears to favor the European currency alongside a reduction in the Fed's hawkish rhetoric on interest rate hikes.

Although the European currency seems to maintain and try to defend the recent gains as i mentioned in previous articles I see quite difficult to maintain the recent upward momentum at the same pace and already the signs of fatigue are evident.

Today's agenda is limited and we have some news only from the US economy, the Producer Price Index and the important survey on the course of consumer sentiment.

If the news will not disappoint, it will be quite difficult for the European currency to maintain the upward momentum by overcoming and maintaining the levels above 1,06.

In view of the decision from the Fed on interest rates next week, a possible announcement of some good news later today from the side of the US economy and in conjunction with the closing of the week would be a good opportunity for a correction in the pair.