EUR/USD: the euro resists US inflation

KEY CHART ELEMENTS
Forex traders were impatiently awaiting the publication of US inflation figures through the CPI index. Inflation came out higher than expected, yet if the indices consolidated initially as well as the assets linked to the dollar, all caught up at the end of the session with the drop linked to the announcement of the figures. So the euro is still stable against the dollar. In addition, expectations of rate cuts have changed little, with still around two thirds of investors betting on a rate cut next March from the American central bank. We will therefore always remain sellers at this weekly resistance level in order to aim for a return to $1.07.

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

Our entry point is at $1.0970. The price target for our bullish scenario is at $1.0700. To preserve the invested capital, we advise you to position a protective stop at $1.1158.

The expected profitability of this strategy is 270 pips and the risk of loss is 188 pips.