EUR/USD: stabilisation ahead of looming inflation

Tuesday's speeches by central bankers did not change traders' beliefs. Jerome Powell reaffirmed his commitment to fighting inflation while Christine Lagarde announced that she wanted to give more speaking time to national central bankers as they were more in tune with inflation than the ECB's chief economist was. Technically, the European currency remains in a bearish dynamic. In the short term the 20 period moving average is acting as resistance.

MEDIUM TERM FORECAST

Based on 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.