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#1 06-01-2021 13:59:31

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3069

EUR/USD: the upward direction remains in place

EUR/USD: the upward direction remains in place

Without disassociating itself from other assets such as equities, on both sides of the Atlantic, and oil, supported by a decision of Saudi Arabia, the Euro increased its advantage against the Dollar, in a foreign exchange market that has its eye on the high-stakes senatorial election in Georgia. Forex traders are also carefully gauging the pace of vaccine rollout in the hardest-hit regions of the world. The risks of reconfinement in Europe do not currently weigh on the single currency.

On the U.S. policy front, a victory for the two Democratic candidates appears to be on the horizon in Georgia. The final results have not yet been published, but Raphael Warnock has already won his seat as Senator, and Jon Ossoff, the other Democratic candidate, is in a favourable position.

"However, the Biden/Harris tandem will not be able to fully implement its programme for several reasons", says Bastien Drut, senior strategy at CPR AM. First of all, it should be remembered that the divisions within the Democratic Party are strong between the left wing and the centrist wing, and that these were only put to sleep during the electoral campaign. It will be necessary to deal with the different sentiments within the democratic party. Democratic senator Joe Manchin, for example, is opposed to some progressive measures that he considers "radical" and will be one of the people to watch over the next few years. Arizona senator Kyrsten Sinema, another moderate, believes that any major legislation must be negotiated with Republicans.

"This election could set the trend for political relations in the United States, and if the democrats win it could provide a much greater stimulus," says Vincent Boy (IG France) earlier this week. Relations have become all the more strained, even within the Republican camp, in light of the tensions and pressures exerted by Donald Trump, who still believes he has been robbed of the presidential election.

As of right now, the pair is trading at $1.2323.


Since 4 November, the currency pair, one of the benchmark markers of risk appetite in the eyes of fund managers, has been rising steadily, without running out of breath, above a 20-day moving average (in dark blue), a trend line that acts as a support. The opinion will remain positive as long as the spot remains above it. At this stage, there is no movement of breathlessness in the trend as defined by our battery of mathematical indicators, in particular our RSI (Relative Strength Indicator) type oscillation indicators.


With regard to the key graphical factors we have mentioned, our opinion remains positive in the medium term on the Euro Dollar (EURUSD) exchange rate.

Our entry point is $1.2338. The target price for our bullish scenario is $1.2624. To preserve the capital employed, we advise you to position a protective stop at $1.2252.

The expected profitability of this forex strategy is 286 pips and the risk of loss is 86 pips.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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