(News Bulletin 247) – If the Fed Minutes, by their rather offensive content, played a catalytic role in the significant decline of the Nasdaq Composite yesterday (-3.34% to 15,100 points), and to a lesser extent on the expanded S & P500 index (-1.94% to 4,700 points), the Dollar did not take the opportunity to come out of its phase of congestion against the Euro.
The FOMC report of December 14 and 15 revealed the offensive content of the debates between its members, and it is clear that inflation, logistical bottlenecks and tensions in the labor market were the subjects major tension. And the tense discussions around the schedule for reducing the balance sheet have caused 10-year Treasuries to heat up, currently close to 1.73.
However, the matrix remains the same, namely a potential increase in “remuneration” between the two currencies, in favor of the greenback. The exit from the bottom of a phase of congestion around $ 1.13 remains privileged, but the initiatives remain thwarted by the probabilities of forming a false exit from the top (see below).
In the statistical chapter yesterday, RAS concerning the final data of the PMI services (IHS Markit) in the Euro Zone, in final data for December, at 53.1, without much difference compared to the previous estimate. The operators also took note of the results of the ADP (Automatic Data Processing) survey on employment. According to the private human resources firm, the US economy created 807,000 jobs in the private sector (excluding agriculture) in December, largely beating the target, the highest since May. Verdict Friday with content from NFP (Non Farm Payrolls), the federal monthly private employment report.
To be continued this Thursday for the United States, the weekly registrations for unemployment benefits at 2:30 p.m., the trade balance at 2:30 p.m. and the services PMI (ISM) at 4:00 p.m. In the immediate future, currency traders have just learned of satisfactory figures, beyond expectations without showing any overheating, on producer prices in November (+ 1.8% in the Euro Zone on a monthly basis).
At midday on the forex market, the Euro was trading against around $ 1.1310.
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. So beware of action bias.
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
©2022 News Bulletin 247
Source: Tradingsat
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.
