(News Bulletin 247) – The European currency continues its rise thanks to a weak dollar. Investors should be cautious as the European currency has appreciated rapidly in recent days. Indeed, traders should be more timid as we await, this evening at 8:00 p.m. French time, the publication of the minutes of the American central bank. This category of publication is closely scrutinized by operators because the Fed minutes present a detailed report of the discussions and decisions taken during the meetings of the Federal Open Market Committee (FOMC). These meetings are held approximately eight times a year and concern the monetary policy of the United States, in particular interest rates. The minutes are published three weeks after each meeting, which allows investors and other market participants to better understand the intentions and concerns of the members of the Fed. In addition to this event, investors are awaiting a speech by the American central banker on Friday at the traditional Jackson Hole symposium. Investors are pricing in rate cuts of three to four-quarters of a point from the U.S. central bank by the end of the year after better-than-expected retail sales data restored confidence that a looming recession is likely to be avoided.
Technical Commentary: The European currency has just set up a configuration of three white soldiers, that is to say three successive green bodies of similar size. This graphic configuration of candlesticks implies a continuation of a bullish scenario. Despite the proximity of important weekly resistances, we will favor the trend here and therefore purchases on pullbacks, particularly as close as possible to 1.10.
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.
The News Bulletin 247 council
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