(BFM Stock Exchange) – This article, with free access, is produced by the research team in BFM Stock Exchange analysis and market strategy. To not miss any opportunity, consult all of the analyzes and discover our portfolios by accessing our privilege space.
No notable change on the pair of Euro / dollar currencies, which continued its movement on Friday sweater (graphic rejection) on the basis of $ 1,1675, in a bullish movement, the fruit of an appetite for the risk insensitive to commercial issues.
The single currency, as a reminder, is a reliable barometer of market appetite for financial risk, in the same way as the equity markets.
If the appetite for the risk is not started at this stage, this trade war undermines the hegemonic role of the dollar in world trade, in the midst of its DNA redefinition. “On the foreign exchange market, the trades are still net of dollars. After a drop of -13% against the euro since the start of the year, they expect the dollar to collapse in similar proportions against the Chinese Yuan, the Australian dollar and the South Korean Won. These are the three currencies that could the most benefit from the wave of distrust, The positions on the options market “, deciphers Christopher Dembik, investment strategy advisor at Pictet AM.
A spokesman for the European Commission quoted by the BBC said that Brussels hoped to reach an agreement with Washington “in the coming days”. On Tuesday, Donald Trump said he was planning to publicize his demands towards the European Union in the coming days. In the meantime, the American president has continued to announce his customs from customs. Wednesday, the tenant of the White House confirmed that customs duties of 50% on copper imports would come into force on August 1. The American president has also unveiled new customs surcharge by country, which includes a rate of 50% against Brazil.
In the statistical chapter, weekly registrations for unemployment benefits emerged at 227,000, against a consensus at 236,000, new proof of employment health health. What further support the scenario of a status quo monetary at the end of the month. According to the Fedwatch tool of the CME Group, the probabilities of a softening of 25 base points of the “rent” of the dollar fell to 6.7%. This morning, traders will have noted the monthly prices increase in France by 0.4%, slightly above expectations (+0.3%), which allowed them to increase stable inflation in France.
At midday on the foreign exchange market, the euro was treated against $ 1,1695 approximately.
Key graphics elements
The release of the technical camisole is confirmed, coming to give more meaning to the supporting of the mobile average at 20 days (in dark blue).
The buying position on the spot can be kept as long as the oscillations are built between this trend curve and the high bollingger strips (20; 2.5).
The relative force index (RSI) is in full convergence with the courses.
Medium term
In view of the key graphic factors that we have mentioned, our opinion is positive in the medium term on Euro dollar parity (Eurusd).
Our entry point is 1,1694 USD. The course of course in our Haussier scenario is 1,2464 USD. To preserve the committed capital, we advise you to position a protection stop at 1,1459 USD.
The profitability hope of this Forex strategy is 770 pips and the risk of loss is 235 pips.
The News Bulletin 247 Council
Daily data graphics
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
