EUR/USD: euro is well positioned ahead of ECB meeting

KEY CHART ELEMENTS

Forex traders remain optimistic about the euro as Mrs. Lagarde is due to speak this afternoon and the ECB is expected to leave its interest rates unchanged at its meeting on Thursday. PMI data is still below 50, indicating a contraction in activity still underway in the euro zone. Investors are regaining confidence as 10-year rates ease after new annual highs. PMI statistics this afternoon in the United States at 15:45 (European time) could change the balance. Technically, traders must always wait for a return towards 1.04 to initiate long positions and become cautious when approaching the resistance zone of 1.07-1.08.

MEDIUM TERM FORECAST

Considering the key graphical factors that we have mentioned, our opinion is neutral in the medium term on the EUR/USD.

We will maintain this neutral opinion as long as EUR/USD prices are positioned between support at $1.0550 and resistance at $1.0693.