EUR/USD weekly downtrend opportunity based On 1.00 Lot Calculation:
- EVENT (OCTOBER 7 AT 13:30 GMT+1): US NONFARM PAYROLL DATA AND UNEMPLOYMENT RATE (SEPTEMBER). The US labor market remains resilient, which could be supported by the September NFP data on October 7. In this case, the US Fed could be encouraged to continue raising their interest rates. According to initial estimates, the NFP is expected to come in at 290,000. The Unemployment rate is expected to remain unchanged at 3.7%.
- EURZONE INFLATION HITS A FRESH ALL- TIME HIGH OF 10%. Inflation in the Eurozone continued to rise despite recently falling energy prices. Rising inflation continues to weaken the purchasing power of the euro, which could keep investors away from the unique currency. This could be negative for the Euro.
- 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 AFTER THE U.S. FEDERAL RESERVE RAISING INTEREST RATES TO THE HIGHEST SINCE 2008 (3.25%): The interest rates (FED) in the US have gone up recently to 3.25%, while the benchmark interest rate in Europe has gone up to 1.25%. 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 TESTS ITS LOWEST RATE IN 20 YEARS (0.95343). Investors continued to flock to the safe heaven US dollar in current times of distress, staying away for the European currencies like the Euro as European economies continue to be pushed into recession.
EUR/USD, September 30, 2022
Current Price: 0.97800
|
EUR/USD |
Weekly |
|
Trend direction |
|
|
1.0100 |
|
|
1.0050 |
|
|
1.0000 |
|
|
0.9550 |
|
|
0.9450 |
|
|
0.9400 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
EUR/USD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-3,200 |
-2,700 |
-2,200 |
2,300 |
3,300 |
3,800 |
|
Profit or loss in €2 |
-3,280 |
-2,768 |
-2,255 |
2,358 |
3,383 |
3,895 |
|
Profit or loss in £2 |
-2,897 |
-2,444 |
-1,991 |
2,082 |
2,987 |
3,440 |
|
Profit or loss in C$2 |
-4,396 |
-3,709 |
-3,022 |
3,160 |
4,534 |
5,221 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 12:46 (GMT+1) 30/09/2022
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