CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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.

EURUSD

Market Opportunities - 19/08/2022

19 August, 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: JACKSON HOLE SYMPOSIUM (AUGUST 25- 27). FED CHAIR JEROME POWELL TO DELIVER A SPEECH ON AUGUST 26 AT 15:00 GMT+1. The Federal Reserve Bank of Kansas City hosts dozens of central bankers, policymakers, academics and economists from around the world at its annual economic policy symposium in Jackson Hole, Wyoming. Usually Central Bankers use the event to make important announcements that can change financial conditions within the markets. Fed Chair Jerome Powell is expected to participate in this year’s event and he could be expected to make announcements regarding the Federal Reserve outlook. The Federal Reserve is expected to meet next on September 21, 2022, to raise further interest rates by either 0.50% of 0.75% points. Current rate stands at 2.50%.
  • EUROPEAN ECONOMY REMAINS UNDER THREAT OF RECESSION AS RUSSIAN NATURAL GAS FLOWS FROM RUSSIA REMAIN LOW. 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, August 19, 2022
Current Price: 1.0069

EUR/USD

Weekly

Trend direction

DOWN

Resistance 3

1.0300

Resistance 2

1.0250

Resistance 1

1.0185

Support 1

0.9950

Support 2

0.9800

Support 3

0.9700

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 $

-2,310.00

-1,810.00

-1,160.00

1,190.00

2,690.00

3,690.00

Profit or loss in €2

-2,298.51

-1,801.00

-1,154.23

1,184.08

2,676.62

3,671.64

Profit or loss in £2

-1,953.46

-1,530.63

-980.96

1,006.33

2,274.80

3,120.45

Profit or loss in C$2

-3,003.00

-2,353.00

-1,508.00

1,547.00

3,497.00

4,797.00

1. 1.00 lot is equivalent of 100,000 units

2. Calculations for exchange rate used as of 12:45 (GMT+1) 19/08/2022

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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