EUR/USD: Doubts returned on the Euro with room for further losses
|The single European currency is already retreating below the 1,09 level as the upward momentum of the previous days is under strong challenge fully justifying my thoughts as they were expressed in previous articles.
Yesterday's meeting of the European Central Bank did not bring any surprise with the rhetoric of the president Lagarde remaining relatively the same avoiding to give clearer signals about the prospects of a reduction in interest rates from the ECB until the end of the year.
Τhe single European currency after 3 weeks of mild bullishness risks closing the week with marginal losses, breaking a very good bullish streak.
The aftermath of the European Central Bank meeting and the statements of President Lagarde could not feed back the continued rise for the European currency and the signs of fatigue that had already appeared on the table became more pronounced with the consequence that a good correction is already underway.
On the other side of the Atlantic there was nothing new on the table, yesterday's agenda did not bring any surprises and bets on the prospects for a rate cut by the Fed have not changed.
At the moment most odds are centered around the prospect of two more cuts although the scenarios of one and only or even three cuts are not out of the game.
Today's agenda is relatively quiet without any very important macroeconomic data with the scenario of the mild correction continuing as it would be a surprise if the catalyst appeared which would restore the European currency to a strong upward momentum closing the week near to its recent highs at 1,0950.
Although I believe that the European currency has room for further decline I prefer to stay on hold as I failed to find the right entry point as I expected much higher levels for the prospect of buying the US currency.
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