EUR/USD: The dollar continues to weaken.

(News Bulletin 247) – The dollar has fallen to its lowest level in eight months. Indeed, investors are preparing to listen to economic comments this week at the Jackson Hole symposium where they are waiting for confirmation from the Federal Reserve’s central banker, Jerome Powell, regarding the rate cuts widely anticipated until now. The latest economic data are perfectly aligned with inflation falling, consumption holding steady and an unemployment rate rising slightly again. The conditions are right to ease monetary policy and all without the need for emergency intervention. A very favorable scenario for investors who like risk but a scenario on the other hand that weakens the dollar. In addition, geopolitical tensions are easing, thus encouraging risk-taking on the part of investors, the dollar being favored in a context of tension usually. Indeed, the United States declared that Israel had accepted a ceasefire proposal in Gaza. The consequences are direct: the euro appreciates, benefiting gold, which reaches new records. However, we will be watching today at 11:00 the publication of inflation in the euro zone or at 15:35, French time, the speech by Bostic, a member of the FOMC.

Technical Section: Technically, the European currency is trending upwards in the short term and is facing significant weekly resistance. Without a signal, it seems dangerous to try to oppose the current flow, so we will look for a bullish breakout to accompany the trend or a pullback in contact with the moving averages to reposition ourselves within the trend.

MEDIUM TERM FORECAST

Considering the key graphic factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD) parity.

We will maintain this neutral opinion as long as the Euro Dollar (EURUSD) parity rates are positioned between the support at 1.1069 USD and the resistance at 1.1134 USD.

DAILY DATA CHART