CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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. 77% 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.

EURUSD

Market Opportunities - 06/05/2022

06 May, 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.

EURUSD Weekly downtrend opportunity based on 1 Lot Calculation:

  • EVENT: Wednesday, May 11 at 13:30 GMT+1 – US Consumer Price Index (CPI) figures for April. It is expected that core inflation in the US, which excludes food and energy prices, further rose to 6.6% last month. High inflation is pushing the US Federal Reserve to continue to hike interest rates, while the ECB is still behind the Fed curve, and will remain so as disappointing economic data continues to roll in. This is why the euro is depressed;

  • The euro is also heavily pressured by the prospect of (detrimental effects of) additional (6th round of) sanctions on Russia and the ongoing war in Ukraine with no solution on the horizon yet;

  • The dollar Index, which tracks the US currency against a basket of six other currencies, trades high above 100 points, its highest level in the last few decades, pointing to further upside.

EURUSD, May 6, 2022
Current Price: 1.0554

EUR/USD

Weekly

Trend Direction

DOWN

Resistance 3

1.0754

Resistance 2

1.0724

Resistance 1

1.0694

Support 1

1.0414

Support 2

1.0384

Support 3

1.0354

Example of calculation based on weekly trend direction for 1 Lot1

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss Short in $

-2,000

-1,700

-1,400

1,400

1,700

2,000

Profit or loss Short in €2

-1,898

-1,613

-1,328

1,328

1,613

1,898

Profit or loss Short in £2

-1,627

-1,383

-1,139

1,139

1,383

1,627

Profit or loss Short in C$2

-2,570

-2,185

-1,799

1,799

2,184

2,570

1. 1 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 6/5/2022

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 details

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