EUR/USD: what's new with the pair?

The euro continued to consolidate above its 20-day moving average (in dark blue), as traders digested the particularly firm tone adopted by the big moneymen on both sides of the Atlantic last week.

In a market where the "bad macroeconomic news = hope for monetary easing = risk appetite" model is gradually losing its meaning in favour of its exact opposite, we will be paying close attention to today's stat publication at 16:00, namely the consumer confidence index (Conference Board). An indicator with a traditional strong impact in the event of a deviation from the consensus, due to the very structure of the US economy, which is highly dependent on the strength of domestic consumption for its national wealth creation. See you at 16:00 for the publication, expected to rise to 100 points.

A return of risk appetite would, under these conditions, favour the EUR/USD.

Right now, the EUR/USD is trading at $1.0619.

KEY CHART ELEMENTS
The 20-day moving average (in dark blue) continues to play its role as chart support. A positive view remains above this straight-line trend line.

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

Our entry point is $1.0613. The price target of our bullish scenario is $1.1189. In order to preserve the capital invested, we advise you to place a protective stop at $1.0499.

The expected return on this Forex strategy is 576 pips and the risk of loss is 114 pips.