EUR/USD: US inflation puts pressure on the euro

KEY GRAPHIC ELEMENTS

The European currency has been under pressure since the publication of American inflation yesterday. Indeed, the figures came out higher than expected, casting a chill on risky assets and causing the euro to bend against the dollar. Data suggests that inflation is being driven by housing in the United States. Today, investors will listen to the President of the European Central Bank at 3:00 p.m. French time and then read the Michigan consumer confidence index at 4:00 p.m. French time. Technically the European currency is still under downward pressure in the medium term and could reach the lower part of this zone at 1.04 in the coming sessions. While American rates are trying to stabilize and the dollar has also shown signs of running out of steam in recent sessions, bad news on inflation and recent geopolitical events are maintaining pressure on the euro. We will therefore have to monitor these two catalysts in the coming weeks.

MEDIUM TERM FORECAST

Considering the key graphical factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD).

We will maintain this neutral opinion as long as Euro Dollar (EURUSD) prices are positioned between support at 1.0435 USD and resistance at 1.0693 USD.

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