KEY GRAPHIC ELEMENTS
Currency traders are not taking initiatives while American inflation is expected at the end of the week. However, today they will receive unemployment figures at 11:00 a.m. for the euro zone, expected at 6.5%. Investors, while slightly less optimistic than two weeks ago regarding the US central bank’s rate cuts, keep in mind that US consumers’ short-term inflation forecasts have fallen to their lowest. level for almost three years in December according to the New York Fed survey. Today around two thirds of operators are betting on a first rate cut next March from the American central bank. Technically the European currency is below the upper limit of a wide range. Few initiatives should be taken by Thursday. We will therefore monitor the break at the daily close of 1.09 to aim for 1.07.
MEDIUM TERM FORECAST
Considering the key graphical factors that we have mentioned, our opinion is negative in the medium term on the Euro Dollar (EURUSD).
Our entry point is at 1.0949 USD. The price target for our bearish scenario is at 1.0800 USD. To preserve the invested capital, we advise you to position a protective stop at 1.1200 USD.
The expected profitability of this Forex strategy is 149 pips and the risk of loss is 251 pips.
News Bulletin 247 advice
DAILY DATA CHART
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