EUR/USD: A context not conducive to risk appetite

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(News Bulletin 247) – A time reassured by the possibility of a summit bringing together J. Biden and V. Poutine, the markets took a nosedive in the morning, while Moscow finally considers the organization of such a meeting “premature”. Result: further increased pressure on assets that measure risk appetite, with the notable exception of crude oil, whose prices remain firm pending the consequences of potential economic sanctions. In the immediate future, the forces tended to balance out in the absence of American landmarks this Monday being a public holiday and a day off on Wall Street (Commemoration of the birth of George Washington, President’s Day).

Forex traders are turning to the very first estimates of activity indicators (PMI by IHS Markit) for services and industry. While the figures are rather close to expectations for industry, the score for services (55.8) is well above expectations.

Chris Williamson, Chief Business Economist at IHS Markit, commented on the latest figures from the Flash PMI survey: for many consumer services – including travel, tourism and leisure – and helped ease supply challenges. also improved during the month, and the pace of job creations strengthened.”

At midday on the foreign exchange market, the Euro was trading against $1.1360 about.

KEY GRAPHIC ELEMENTS

For the first time since June 16 (then on a sudden break), the spot was close to its 100-day moving average (in orange), the underlying trend line still very significantly bearish. The much broader consolidation has taken shape below $1.1460 which is a chart resistance level. The field is immediately open towards the lower limit of this very wide range, around $1.1115. Currency traders will however avoid taking an immediate position in the absence of a satisfactory entry point.

MEDIUM TERM FORECAST

In view of the key graphic 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 the Euro Dollar (EURUSD) parity prices are positioned between the support at 1.1260 USD and the resistance at 1.1360 USD.

CHART IN DAILY DATA

EUR/USD: A context not conducive to risk appetite (©ProRealTime.com)

©2022 News Bulletin 247

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