EUR/USD: Powell does not reassure investors

KEY GRAPHIC ELEMENTS

Investors are not penalizing the euro for the moment while the context remains highly anxiety-provoking. Indeed, fears are still strong regarding a widening of the conflict in the Middle East. IDF forces are expected to begin their ground offensive very soon. In addition, the US 10-year rate reached new highs as it recorded its biggest weekly increase in a decade. The United States continues to borrow considerable sums on the markets to finance the armaments of its allies. The American president is seeking to pass a $100 billion aid package for Israel and Ukraine at a time when the American debt has seen its largest increase in recent months. Last night, the American central banker’s comments failed to reassure investors. However, J. Powell announced that the central bank was unlikely to raise interest rates again in November. Technically the European currency continues to stabilize in its range. We will look for sales near the upper limit above 1.06 and purchases on the lower limit in contact with 1.04.

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.

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