EUR/USD: Euro maintains advantage above 1.0400 level as Dollar's latest rally is under doubts
|The single European currency appears to be maintaining the momentum of a mild reaction for the third consecutive day, having currently secured the level of 1.04.
The data announced yesterday on inflation in Germany and the hopeful signals in some indicators of the European economy gave more room for the European currency to maintain a mild reaction mode and move even further away from the recent lows in 1.0220.
As I mentioned in yesterday's article, the recent rally of the US currency over the past three months is showing signs of fatigue and new catalysts may be needed to fuel a strong upward trend for the US currency.
Nothing has changed in the general picture of the market with the main weights that have weighed on the European currency remaining on the table although it slowly seems that the dust is settling.
Several critical macroeconomic news releases are due during the week, culminating US new jobs data on Friday, is expected to guide the course of the exchange rate in the coming days.
Although the recent rally in the US currency is showing clear signs of fatigue, it may not be time yet for the European currency to develop strong upward momentum and beyond some very good corrections it will be difficult to show anything better.
Today's agenda is quite interesting, with inflation data in the Eurozone and the ISM survey on the performance of the services sector in the United States standing out.
Without any major surprises, the exchange rate is expected to digest these levels without seeing any significant levels broken as many investors remain cautious at the start of the new year, awaiting the very critical US jobs data on Friday.
No significant changes in my thinking with buy on dips strategy remaining my main idea for now.
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