(News Bulletin 247) – The spot EURUSD, in a bearish background pattern, is currently plotting a chart pattern similar to a pattern bearish, against a background of drying up appetite for risk with the recent decisions and speeches of the planet’s big moneymakers, who are determined to turn the tap firmly on to fight against galloping inflation, even if it means weakening growth. Even crude oil, which was, admittedly in exceptional geopolitical conditions, exceptional as a risk appetite barometer is beginning to decline.
“Markets should expect a strong rhetoric on accelerating monetary policy tightening in the coming months. This could confirm another 75 basis point hike in July and another 50-75 basis points next September”, comments Vincent Boy, Market Analyst at IG France.
In the absence of any benchmark across the Atlantic this Monday, with the closure of Wall Street due to a public holiday (Juneteenth), forex traders will follow in priority a hearing of Mrs. Lagarde, President of the ECB, before the European Parliament. “[La Présidente de la BCE] could, finally, confirm a rate hike of 50 basis points in July, or even specify the speed of the monetary tightening to come”, continues M Boy.
The rest of the week will nevertheless be dense on the statistical front with, among other events, new home sales across the Atlantic tomorrow, the European consumer confidence index on Wednesday, PMI activity indicators (flash data for the month current) on Thursday, German IFO and U-Mich revised US consumer confidence data on Friday.
At midday on the foreign exchange market, the Euro was trading against $1.0530 about.
KEY GRAPHIC ELEMENTS
The failure at the contact of the 50-day moving average (in orange) is now recorded, and the bearish targets in the direction of $1.0350 and $1.0250 are locked. A close at the weekly lows in week 23 reinforced the bearish message.
MEDIUM TERM FORECAST
In view of the key graphic factors that we have mentioned, our opinion is negative in the medium term on the Euro Dollar (EURUSD).
Our entry point is at 1.0533 USD. The price target of our bearish scenario is at 1.0251 USD. To preserve the invested capital, we advise you to position a protective stop at 1.0636 USD.
The expected return of this Forex strategy is 282 pips and the risk of loss is 103 pips.
CHART IN DAILY DATA
©2022 News Bulletin 247
I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
