EUR/USD: A breather ahead of tonight's Minutes

The EUR/USD continues its ascent on the back of a weak dollar. Investors are expected to be cautious as the European currency has appreciated rapidly in recent days. Indeed, traders are expected to be more cautious as we await, this evening at 8:00 p.m. French time, the publication of the minutes of the American central bank. This category of publication is closely scrutinized by traders because the Fed minutes present a detailed account of the discussions and decisions taken during the meetings of the Federal Open Market Committee (FOMC). These meetings are held approximately eight times a year and concern the monetary policy of the United States, in particular interest rates. The minutes are published three weeks after each meeting, which allows investors and other market participants to better understand the intentions and concerns of the members of the Fed. In addition to this event, investors are expecting a speech by the American central banker on Friday at the traditional Jackson Hole symposium. Investors are expecting rate cuts of three or four quarters of a point from the US central bank by the end of the year after better-than-expected retail sales data restored confidence that an imminent recession would be avoided.

Technical Commentary: The European currency has just set up a three-white-soldier pattern, i.e. three successive green bodies of similar size. This candlestick chart pattern implies a continuation of a bullish scenario. Despite the proximity of important weekly resistances, we will favor the trend here and therefore purchases on pullbacks, particularly as close as possible to 1.10.

MEDIUM-TERM FORECAST
In view of the key chart 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 the EUR/USD price is positioned between the support at $1.1069 and the resistance at $1.1134.