The euro (EUR) has risen in front of the Dollar American (USD) and looks well backed while seeking to extend its last recovery after the recoil since its maximum of July 1, the FX Chief Strategies of Scotiabank, Shaun Osborne and Eric Theoret report.
EUR faces a renewed upward trend waiting for Thursday’s ECB
“There have been no important data publications during the night and all looks are focused on Thursday’s ECB, where markets are valuing a widely expected pause. The short -term risk lies in the communication of the ECB on their rate of fees, since recent messages have been largely neutral and create a marked contrast with the rates markets that continue to value approximately a complete rate cut December.”
“An erosion of the moderate bias of the market should offer the EUR some fundamental support through the differentials. In terms of feeling, the options market is upward and is expanding the premium for protection against the EUR increase. In terms of positioning, the long net position of the CFTC is extending its impulse towards the upper end of its historical range.”
“The short -term price action has become much more constructive after the recent setback from the maximum of July 1. The thrust above 1.17 is important, and an extension of the profits should pave the way for a resumption of the medium -term bullish trend from the minimum of February. The RSI looks comfortable in upward territory (back over the threshold of 50) and we wait 1,1650 and the resistance of 1,1750. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
