EUR/USD: A busy week of economic news is ahead

KEY CHART ELEMENTS
The week will be important for currency traders so many central banks are due to speak this week. Indeed, currency traders are awaiting decisions on interest rates from the Bank of Japan, the American Federal Reserve and the Bank of England, respectively on Tuesday, Wednesday and Thursday. If the decision of the American central bank, namely a status quo, is widely anticipated by the market, investors will closely follow the speech of the American central banker while the US economy developed more quickly than expected in the third quarter, at its fastest pace in almost 2 years. Indeed, strong consumer spending was the main driver of the 5% annual increase in gross domestic product. At the same time, last week as US GDP data was released, Australia's central bank governor announced that there were risks that inflation would prove more stubborn than expected and that interest rates would interest could increase again. A potential indicator of the hint of inflation. Technically the European currency is still moving in a range between 1.08 and 1.04. We will remain sellers below 1.08 to aim for 1.04. Conversely, in the event of weakness in the euro we will monitor declines to 1.04 to initiate long positions. The break of 1.04 would trigger a new phase of decline bringing the European currency back to parity with the dollar.

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.