After almost two years of a monotonous marathon devaluation against the US Dollar, the Euro has awakened from lethargy in the last two months, managing to stay above the value it had before 24 months of a downward channel in EUR/USD. This reversal of direction was due to the new position of the US central bank regarding the stimulus program, namely the fact that it becomes clear that the FED will keep interest rates low and an injection of relevant liquidity for a prolonged period of time, which puts it on the same level that was assumed for the ECB.
However, with the level of $1.25 in sight, market forces show some changes, this is because in addition to the technical resistance that exists in this value, for having been the highs of two years ago. In addition, a little higher is an even more relevant economic and political level, the $1.30 is considered an excessive value for the fragile European economy to compete with the largest economy in the world, regarding exports. Hence, there may be an intervention, with greater or lesser visibility on the part of the ECB to limit the appreciation of EUR/USD.
