EUR/USD: The big picture remains stable with all eyes on Fed meeting on Wednesday

The single European currency remains near 1,05 levels as it continues to be extremely ''heavy'' with investors avoiding taking big bets.

The European Central Bank meeting last week brought no surprises to the table, the decision to cut key interest rates by 25 basis points was completely expected, while there were minor differences in the rhetoric of President Christine Lagarde.

With some minor exclusions for the second consecutive week the exchange rate was maintained in a limited fluctuation range between the levels 1.05 - 1.06 as the deviations on either side of these levels were temporary.

This reinforces the view that investors are avoiding taking big bets, waiting for a new strong catalyst to make decisions.

Although the main weights that have pressured the euro over the last three months remain on the table, for many these prices are considered low and they would expect a very good rebound in order to consider repositioning themselves in favor the US Dollar.

Geopolitical risk, political uncertainty in the 2 largest economies in the eurozone, and more generally, concern about the course of the European economy continue to be high on investors' agenda.

Today's agenda is quite interesting with President Lagarde's speech and indicators for the manufacturing and services sectors in the Eurozone and the United States standing out.

After the recent pressures that the European currency had received, resulting in a low of 1.0330, it has shown considerable resilience and continues to trade well away from the recent lows, which reinforces my idea of ​​buying the European currency in a sharp new dip with the aim of a correction.