EUR/USD weekly downtrend opportunity based On 1.00 Lot Calculation:
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EVENT (SEPTEMBER 13, TUESDAY AT 13:30 GMT+1): US INFLATION FOR AUGUST. Inflation in July managed to fall to 8.5% from previous 9.1%. Inflation data could be able to signal what the US Fed will be up to do next.
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EVENT (SEPTEMBER 21, WEDNESDAY AT 19:00 GMT+1): US FEDERAL RESERVE (FED) INTEREST RATE DECISION. PRESS CONFERENCE AT 19:30 GMT+1. The FED is expected to raise their benchmark interest rate by 75 basis points from current 2.50% TO 3.25%. Interest rates are expected to go up due to rising inflation in the US, stands currently at of 8.5%.
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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.
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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 1.25%. The difference between the two remains 1.25% 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 9, 2022
Current Price: 1.0100
|
EUR/USD |
Weekly |
|
Trend direction |
|
|
1.0350 |
|
|
1.0300 |
|
|
1.0250 |
|
|
0.9940 |
|
|
0.9800 |
|
|
0.9700 |
Example of calculation base on weekly trend direction for 1.00 Lot1
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EUR/USD |
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Pivot Points |
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|
Profit or loss in $ |
-2,500 |
-2,000 |
-1,500 |
1,600 |
3,000 |
4,000 |
|
Profit or loss in €2 |
-2,475 |
-1,980 |
-1,485 |
1,584 |
2,970 |
3,960 |
|
Profit or loss in £2 |
-2,148 |
-1,718 |
-1,289 |
1,375 |
2,578 |
3,437 |
|
Profit or loss in C$2 |
-3,248 |
-2,599 |
-1,949 |
2,079 |
3,898 |
5,197 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 09:30 (GMT+1) 09/09/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail