Trade Plan for the EUR/USD 🇪🇺 🇺🇸 (WN37)

Detail on the orders placed by Jeepson Trading at eToro and 5ers

FUNDAMENTAL AND SENTIMENT SUMMARY

The Governing Council of the European Central Bank (ECB) met last Thursday on the 8th of SEptember and a decision was made to hike the Main Refinancing Operations Rate (Interest Rate) by 75bps from 0.50 percent to 1.25 percent which was as expected. The policy outlook is hawkish as Trading Economics are forecasting it to rise to 2.00 percent next year in 2023. The next scheduled meeting for the Governing Council is next month on Thursday the 27th of October.

More recently, with regards to economic indicators, the Balance of Trade for July was reported on Thursday at €-34bn which was far below expectations of €-26.2bn and the second biggest trade gap recorded for the Euro-Area. Imports continued to soar (+44 percent) due to higher energy prices even as exports rose albeit a lot lower (13.3 percent).

The sentiment that is presently influencing the valuations on the Euro is the narrative regarding rising energy costs and how fast they inflate. The recent indicators suggest that the situation is not improving although the war in Ukraine is progressing and Russia are losing territory which raises sentiment on the hopes of a shorter war.

The attention of market participant traders is towards the inflation rate today which if comes in at the expected 9.1 percent or higher will likely sour sentiment on the Euro further.

ORDERS

The momentum on the $EURUSD over the micro-term is bearish and the uptrend may be tested at the 0.989 level. The short-term downtrend is falling from its 61.8 percent retracement level and has a possible support area at $0.965 An order to SELL the $EURUSD is in progress and will be aborted if the inflation report is better than expected otherwise it will be held onto target near $0.991. Active Order: Stop Loss 1.021, High Risk Sell 1.011, Low Risk Sell 1.001.

-END DISCLAIMER-

The content provided is intended for informational purposes only. Investments on the forex markets and trading decisions are made at your own risk.