EUR/USD: US GDP day could challenge Euro's mild correction mode

The single European currency for the fifth day in a row is in a mild correction mode having managed to move well away from the 1,06 lows and is now moving quite easily near the 1,07 levels and above.

The announcements of macroeconomic data from the eurozone in recent days, as they have not disappointed, have raised hopes that the gap of recent months in the path of development of the European and US  economy will narrow.

The European currency has found the supports to continue the mild reaction but it may be too early to be able to change the general climate and beyond the correction behaviors to manage to develop a strong upward momentum which will lead it back to 1,10 level.

Despite the mild reaction of the European currency, I believe that the general picture of the market has not changed significantly, this reaction was quite expected, although it could also happen from lower levels well below the level of 1,06.

On today's agenda, the course of  US economy definitely stands out, which, if it does not disappoint, may act as a trigger for the US currency to come back to the fore.

While at the same time today and tomorrow we have several harbinger indicators of inflationary pressures which could significantly influence bets on the prospect of a reduction in key interest rates by  Fed.

Possible significant deviations from estimates are expected to sharply increase volatility and several critical levels to be called into question.

Despite the mild reaction of the European currency I believe that 1,06 could be tested again especially if the announcements could support such a scenario.

My thinking to buy the European currency after some sharp dives near the 1,05 level has not changed although I have missed the opportunity of the recent reaction.