(News Bulletin 247) – The straitjacket is still tight on the short-term Euro / Dollar currency pair, nearing $ 1.13 per Euro, as the currency pair’s underlying trend remains bearish , in view of the growing prospect of a gap in “remuneration” between the two currencies, after the major monetary meetings (Board of Governors of the ECB and FOMC of the Fed) at the end of 2021.
In the statistical chapter yesterday, the final data of the manufacturing PMI activity indicator (IHS Markit) for the Euro Zone in final data for the month of December, came out perfectly in the target, at 58.0, the surprise score of the component French offsetting the slight disappointment of the German component.
Joe Hayes, Senior Economist at IHS Markit, comments on the latest survey figures: “The second half of 2021 has been particularly difficult for euro area manufacturers, but the latest survey results have not tarnished. festive atmosphere at the end of the year, the data for December highlighting signs of easing of the supply crisis which has hampered production chains in Europe for several months. The input delivery time index recovered for a second consecutive month to its highest level since February, signaling less deterioration in supplier performance at year-end. “
The institute also insists on “the easing of supply tensions [qui] also impacted purchasing prices, with manufacturers reporting the smallest increase in costs since April. “
To be kept on the agenda this Tuesday as a priority, across the Atlantic, the ISM manufacturing PMI activity indicator and new job offers (JOLTS) at 4:00 p.m. American employment will be in the spotlight, throughout the week on the statistical side, with the ADP survey on Wednesday, weekly registrations for unemployment benefits on Thursday and the closely watched federal monthly report (NFP) on Friday.
At midday on the forex market, the Euro was trading against 1,1300$ about.
KEY GRAPHIC ELEMENTS
For now, the Euro / Dollar currency pair is still in the path of a wedge consolidation wedge, which fits into a strongly bearish background momentum. The configuration remains heavy, but we warn against the temptation of an early return to bearish positions, the “risk” of a false exit from the top, in the very short term, being present. We are still waiting for a much better entry point.
MEDIUM-TERM FORECAST
In view of the key graphical factors that we have mentioned, our opinion is neutral in the medium term on the pair Euro Dollar (EURUSD).
We will keep this neutral opinion as long as the price of the pair Euro Dollar (EURUSD) is positioned between the support at 1.1216 USD and the resistance at 1.1360 USD.
DAILY DATA CHART
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Source: Tradingsat
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