CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

EUR/USD

Special Reports - 05/10/2022

05 October, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

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%.
  • EVENT (OCTOBER 13 AT 13:30 GMT+1): US INFLATION (SEPTEMBER). The US Headline Inflation is expected to come in at 8.3%, which would be equal to August’s 8.3%.
  • 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 may be 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.
  • ANALYST OPINION: Goldman Sachs forecasts 0.97. Morgan Stanley forecast 0.97.

EUR/USD, October 5, 2022
Current Price: 0.9950

EUR/USD

Weekly

Trend direction

DOWN

Resistance 3

1.0230

Resistance 2

1.0200

Resistance 1

1.0140

Support 1

0.9750

Support 2

0.9600

Support 3

0.9500

Example of calculation base on weekly trend direction for 1.00 Lot1

EUR/USD

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-2,800

-2,500

-1,900

2,000

3,500

4,500

Profit or loss in €2

-2,818

-2,516

-1,912

2,013

3,522

4,529

Profit or loss in £2

-2,457

-2,194

-1,667

1,755

3,071

3,948

Profit or loss in C$2

-3,797

-3,390

-2,577

2,712

4,746

6,103

1. 1.00 lot is equivalent of 100,000 units

2. Calculations for exchange rate used as of 08:54 (GMT+1) 05/10/2022

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
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