The European currency remains slightly above the 1,08 level in a narrow range as today’s agenda is extremely poor and apart from the IFO institute announcement on the path of the German economy there is nothing else of note.
Yesterday was quite interesting and although the European currency tried to maintain an uptrend and challenge the 1,09 level, it soon showed signs of fatigue and with the help of the data announced in the United States on weekly jobless claims this momentum was lost and the Euro fell back to 1,08 levels.
This behavior broadly confirmed my thinking as expressed in yesterday’s article as I maintained significant doubts as to whether the European currency could sustain bullish momentum easily enough.
International stock markets continue to impress and the S&P barometer index has moved to new highs which continues to support the euro but I have significant doubts as to how this amazing rally could continue.
I believe that the macroeconomic as well as the technical picture of the market owes a good correction.
Αs we move towards the end of the week is unlikely that the exchange rate to provide any big surprises and the range of variation most probably will remain limited but the prospect of the 1,08 level again being called into question remains on the table.
