EUR/USD: Few catalysts while waiting for J.Powell

KEY GRAPHIC ELEMENTS

If the euro dollar remains relatively neutral in recent sessions, other currencies are driving the market. For example, the Israeli shekel fell yesterday to its lowest level in more than eight years against the dollar as Israel prepares for a ground offensive on Gaza. The euro remains in its short-medium term range against the dollar between 1.04 and 1.08. Forex traders are awaiting Federal Reserve Chairman Jerome Powell’s speech later this week. Indeed, since the publication last week of American inflation data, which came out higher than expected, the European currency remains at its lowest levels and awaits a new catalyst. However, the recent intervention by the President of the Philadelphia Fed, Patrick Harker, helped to reassure the markets. He repeated that in his opinion the American central bank had probably completed the cycle of monetary tightening. Today the only macroeconomic catalyst will be the US retail sales figures published at 2:30 p.m. French time.

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 1.0550 USD.

DAILY DATA CHART