EUR/USD:FUNDAMENTALS | TECHNICAL FORECAST | LONG SETUP 🔔

Intense volatility for the pair with the euro struggling to hold on the level of 1/1.

After a very interesting day yesterday in which the pair showed strong fluctuations in both directions, today the common European currency is again under intense pressure once again testing the levels of 1/1.

The latest data on the path of inflation in the United States strengthens bets for more aggressive policy from the Fed, thus widening the gap between the Fed-Ecb policies.

There are now some opinions that the US Federal Reserve's announcement at the next meeting will likely raise interest rates by an additional 100 basis points, but we believe this is something that will be very difficult to happen.

Although it is evident that the US central bank is pursuing an aggressive policy it will be difficult to ignore the fragile balance in which the stock markets are.

So in general, an expected increase of 75 points is for us the basic scenario, which the market has already '' priced in "

As we have mentioned in a previous article, the dynamic fall of the euro we expect that it will be limited until the end of the month and reactions like those of yesterday will be repeated.

High volatility will be a feature with trading moving in both directions creating buying opportunities for the Euro.

Although momentum remains strongly bearish, in the long term possibility of the euro returning to higher levels is high.

According to this view, we consider two strategies of different speeds to be the most appropriate. The first by creating long-term buy positions with a horizon In the coming months with targets the levels of 1,05 and above and the second one in the short-term horizon with purchases at new dips and exploiting the reactions of pair.

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