EUR/USD weekly downtrend opportunity based On 1.00 Lot Calculation:
- EVENT: EUROZONE INFLATION (THURSDAY, AUGUST 18 AT 10:00 GMT+1). Inflation in the Eurozone for July is expected to come in at 8.9% for July, which would be the highest ever. To this end, the negative pressure on the Euro is expected to remain this week.
- EVENT: JACKSON HOLE SYMPOSIUM (AUGUST 25- 27). The Federal Reserve Bank of Kansas City hosts dozens of central bankers, policymakers, academics and economists from around the world at its annual economic policy symposium in Jackson Hole, Wyoming. Usually Central Bankers use the event to make important announcements that can change financial conditions within the markets. Fed Chair Jerome Powell is expected to participate in this year’s event and he could be expected to make announcements regarding the Federal Reserve outlook. The Federal Reserve is expected to meet next on September 21, 2022, to raise further interest rates by either 0.50% of 0.75% points. Current rate stands at 2.50%.
- EUROPEAN ECONOMY REMAINS UNDER THREAT OF RECESSION AS RUSSIAN NATURAL GAS FLOWS FROM RUSSIA REMAIN LOW. Recent economic data in Europe and Germany, in particular, has shown that the EU economy continued to fall and reduced natural gas flows from Russia to Germany could exacerbate this situation as Russia provided German with 55% of their needs last year. Without the Russian gas, The German economy could soon enter a recession, which is negative for the Euro currency.
- US- EUROPE INTEREST RATES DIFFERENTIALS IN FAVOUR OF THE US DOLLAR: The interest rates (FED) in the US have gone up recently to 2.5%, while the benchmark interest rate in Europe has gone up to 0.50%. The difference between the two remains 2% points in favor of the US dollar, which makes the US dollar more attractive than the Euro. This could be another reason why the US dollar could continue strengthening against the Euro.
EUR/USD, August 15, 2022
Current Price: 1.0200
|
EUR/USD |
Weekly |
|
Trend direction |
|
|
1.0400 |
|
|
1.0375 |
|
|
1.0345 |
|
|
1.0050 |
|
|
1.0000 |
|
|
0.9950 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
EUR/USD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-2,000.00 |
-1,750.00 |
-1,450.00 |
1,500.00 |
2,000.00 |
2,500.00 |
|
Profit or loss in €2 |
-1,962.30 |
-1,717.02 |
-1,422.67 |
1,471.73 |
1,962.30 |
2,452.88 |
|
Profit or loss in £2 |
-1,658.98 |
-1,451.61 |
-1,202.76 |
1,244.24 |
1,658.98 |
2,073.73 |
|
Profit or loss in C$2 |
-2,578.92 |
-2,256.56 |
-1,869.72 |
1,934.19 |
2,578.92 |
3,223.65 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 10:30 (GMT+1) 15/08/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Client Manager for more detail