EUR/USD: traders are awaiting Thursday's US economic reports

KEY CHART ANALYSIS
Traders aren't taking initiatives as US inflation figures are expected on Thursday. Investors, while slightly less optimistic than two weeks ago regarding the US central bank's rate cuts, keep in mind that US consumers' short-term inflation forecasts have fallen to their lowest level for almost three years in December according to the New York Fed survey. Today around two thirds of traders are betting on a first rate cut in March from the US central bank. Technically, the EU currency is below the upper limit of a wide range. Few initiatives should be taken until Thursday. We will therefore monitor the break at the daily close of 1.09 to aim for $1.07.

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

Our entry point is at $1.0949. The price target for our bearish scenario is at $1.0800. To preserve the invested capital, we advise you to position a protective stop at $1.1200.

The expected profitability of this forex strategy is 149 pips and the risk of loss is 251 pips.