EUR/USD: The Euro is struggling to continue the reaction

The single European currency is struggling to defend the 1.08 level as the mild reaction it started on Friday appears to be under question.

The behavior of the pair during Friday was very close to my estimates as in view of Fed's Chairman Jerome Powell speech and also the last day of the week the single European currency showed a reaction behavior and limited the weekly losses by returning slightly above the level of 1.08.

The president of the Fed did not surprise the markets, his speech was generally within expectations as on the one hand he did not bring back to the fore any aggressive tone regarding the next moves of the central bank but at the same time the possibility of reduction in interest rates until the end of the year it appeared that it does not support it for now.

At the same time the officials of the European Central Bank maintain the aggressive tone, their rhetoric remains relatively the same, the next two increases in key interest rates are fully discounted, But as I mentioned in a previous articles this new has become relatively old and does not seem capable to refueling at present some strong upward momentum for the European currency.

The overall picture of the market remains relatively the same, the movements are relatively cautious with no significant direction at the moment as investors remain cautious avoiding large bets in favor of one currency or the other.

The European currency appears to be under mild pressure but without keep big distance from its key characteristic , of reacting when is under heavy pressures , which happened once again on Friday.

Today's agenda remains relatively poor and apart from Consumer confidence in the eurozone and some speeches by officials of the two Central banks there is no other major macroeconomic announcement.

If there is no any major surprise, it would be difficult for today to break any important levels and a possible scenario is the exchange rate to keep trading range between the levels of 1,0750-1,0850.