EUR/USD: The pair remains heavy near 1.1700 as consolidation mode stay in the game

The single European currency is held close to the levels of 1,17 with 1.1750 in the early hours of Tuesday with investors focusing their interest on the issue of trade tariffs and the expected agreements between the European Union and the United States, which if not completed, the possibility of new turbulence in the markets is significant.

Since the European currency rose above the 1.18 level last week, correction behavior appeared strongly on the table, which fully confirmed my thoughts as they had been mentioned in previous articles.

The good data on the United States labor sector announced last week removed further from the table the small possibility that the Fed would proceed with a rate cut in July, strengthening for the time being the view of Fed Chairman Jerome Powell in his intense confrontation with US President Donald Trump.

The single European currency, although it has lost its momentum, remains in the spotlight mainly due to the doubts that have been hitting the American dollar lately, despite the impressive progress of the European economy, which remains with questions.

Today's agenda is very poor in economic announcements, with all interest focused on the issue of trade tariffs and discussions between the United States and the European Union, as the previous deadline of July 9 expires tomorrow.

The correction so far of almost 150 basis points from the recent highs has confirmed my strategy of buying the US currency near the 1.18 level with the aim of some good correction that is underway.

No any significant change in my thinking. I maintain the assessment that the strong upward movement of the European currency has found some signs of fatigue and further climbing towards the 1.20 level will not be an easy task.