EUR/USD weekly downtrend opportunity based On 1.00 Lot Calculation:
- EVENT (SEPTEMBER 8, THURSDAY AT 13:15 GMT+1): EUROPEAN CENTRAL BANK (ECB) INTEREST RATE DECISION. PRESS CONFERENCE AT 13:45 GMT+1. The ECB is expected to raise their benchmark interest rate by either 50 or 75 basis points from current 0.50%. Interest rates are expected to go up due to rising inflation in Europe, which has hit an all-time high of 9.1%. Rising interest rates, however, could be also expected to slow down the economic activity in Europe, pushing it even closer to a recession.
- EUROPEAN ECONOMY REMAINS UNDER THREAT OF RECESSION AS RUSSIAN NATURAL GAS FLOWS FROM NORD STREAM 1 WERE CUT DOWN TO 0.00%. Nord Stream 1 flows were responsible for around 40% of total Russian flows to Europe. In addition, the markets fear that Russia could soon consider cutting flows via other channels, like Ukraine, to Europe. 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, September 5, 2022
Current Price: 0.9933
EUR/USD |
Weekly |
Trend direction |
|
1.0200 |
|
1.0120 |
|
1.0060 |
|
0.9800 |
|
0.9650 |
|
0.9500 |
Example of calculation base on weekly trend direction for 1.00 Lot1
EUR/USD |
||||||
Pivot Points |
||||||
Profit or loss in $ |
-2,666.00 |
-1,866.00 |
-1,266.00 |
1,334.00 |
2,834.00 |
4,334.00 |
Profit or loss in €2 |
-2,686.23 |
-1,880.16 |
-1,275.61 |
1,344.12 |
2,855.50 |
4,366.88 |
Profit or loss in £2 |
-2,321.41 |
-1,624.81 |
-1,102.36 |
1,161.58 |
2,467.70 |
3,773.81 |
Profit or loss in C$2 |
-3,508.99 |
-2,456.03 |
-1,666.31 |
1,755.81 |
3,730.11 |
5,704.41 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 09:30 (GMT+1) 09/05/2022
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