(News Bulletin 247) – The Euro continued its flat consolidation against the Dollar, the spot being subject to headwinds after statistical indicators capable of both fueling risk appetite, and therefore the single currency (Conference Consumer Confidence Board, final US Q3 GDP, reassuring PCE, Richmond Fed manufacturing index), and able to reinforce the Fed’s toughening stance, and therefore support the greenback, through the mechanism of the differential of “remuneration” between currencies…
Yesterday, weekly registrations for unemployment benefits across the Atlantic rose slightly, to 225,000 new units, causing in the very short term a renewed appetite for risk, corroborating the adage “Bad news is good news”. In reality, the market was expecting such a figure, the consensus being exactly at 225,000. Tensions on the labor market, tensions themselves generating inflation, are therefore still strong. And the content of the monthly report next Friday (NFP for Non Farm Payrolls) will provide this title with valuable clues.
To follow this Friday the publication of the Chicago PMI index at 3:45 p.m.
At midday on the foreign exchange market, the Euro was trading against $1.0680 around.
KEY GRAPHIC ELEMENTS
The 20-day moving average (in dark blue) continues to play its role of chart support. Positive opinion kept above this trendline whose orientation is straight. We will monitor the attitude of prices when making contact, if necessary, with this trendline.
MEDIUM TERM FORECAST
In view of the key graphic factors that we have mentioned, our opinion is positive in the medium term on the Euro Dollar (EURUSD) parity.
Our entry point is at 1.0664 USD. The price target of our bullish scenario is at 1.1189 USD. To preserve the capital invested, we advise you to position a protective stop at 1.0524 USD.
The expected return of this Forex strategy is 525 pips and the risk of loss is 140 pips.
CHART IN DAILY DATA
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