EUR/USD: The euro still as resilient

KEY GRAPHIC ELEMENTS

Geopolitics seems to have no influence on the euro, which continues to be resilient. Israeli forces are redoubling their efforts in terms of air strikes and are preparing to begin their ground offensive. The yield on the German 10-year bond remains in demand as the rate remains just below the 12-year high of 3.006% reached at the start of October. This signal indicates that bonds are being sold unlike last week. In fact, rates rise when bond prices fall. Last week, geopolitical fears prompted operators to dump stocks and take refuge in bonds, offering a lull in the rise in bond rates. The yen is also hotly contested as currency traders test the Japanese Central Bank to see if it will raise rates and continue to defend its currency. Without macroeconomic information today, technical elements will remain determining as well as geopolitics. We will therefore wait for a new catalyst to see a trend emerge. We will remain sellers approaching 1.08 and buyers closer to 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 1.0550 USD and resistance at 1.0693 USD.

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