(News Bulletin 247) – The Dollar should continue to appreciate as the US central bank is much more aggressive than the European central bank in fighting inflation. We had an example of that last night. An increase of 0.75% was there again Yesterday, we indicated: “In reality, the real question remains whether at the start of the school year, this “aggressiveness” will continue”
We have part of the answer with a Fed that wants to adapt, month by month, to the economic situation. The firefighter will only use the canadair rates if necessary. Those who hoped for a very voluntarist FED are at their expense.
Holding this state of affairs and as long as it lasts, we must avoid, in our view, remaining in the seller’s camp at all costs because for essentially psychological reasons the parity is not broken and perhaps will not be. .
For the time being, the rebound initiated on July 11 seems to be coming to an end, but sellers are not very convinced
KEY GRAPHIC ELEMENTS
Between potential “remuneration” lower than expected, and risk of recession, particularly with regard to the weight of German industry, the Euro has seen its rebound, operated since the achievement of perfect parity, dry up. Entering a rebalancing phase, not without volatility, was the chosen option. Our neutral opinion remains valid, therefore avoiding taking positions immediately and always waiting for a real will from the sellers.
FORECAST
In view of the key chart factors that we have mentioned, our opinion is neutral on the Euro Dollar (EURUSD) pair until tonight. We will technically keep this neutral opinion as long as the Euro Dollar (EURUSD) parity prices are positioned between the support at 1.0000 USD and the resistance at 1.0274 USD
CHART IN DAILY DATA
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