EUR/USD: A reaction at the support level

After a slight decline at the end of last week, the euro is stabilising. The announcements from the ECB last week raised the odds of a pause in rate hikes in September. Barring a major and surprising catalyst, traders will have to wait for the Bank of England meeting later this week to see volatility return to center stage. Technically the euro remains bullish.

MEDIUM TERM FORECAST

In view of the key graphic factors that we have mentioned, our opinion is positive in the medium term on the EUR/USD parity.

Our entry point is at $1.1020. The price target of our bullish scenario is at $1.1300. To preserve the invested capital, we advise you to position a protective stop at $1.0828.

The expected return of this forex strategy is 280 pips and the risk of loss is 192 pips.