EUR/USD: short-term winds of optimism

While the news on the macroeconomic front is bad, with the European Commission adjusting its economic forecasts downwards, the European currency is trying to recover. Growth this year is expected to be 2.6% compared to 4% initially. Inflation could rise to 6% before falling next year, according to the Commission.

MEDIUM TERM FORECAST

Given the key chart factors we have mentioned, our medium-term view on the EUR/USD is neutral.

We will maintain this neutral view as long as the EUR/USD is positioned between support at $1.0454 and resistance at $1.0758.