EUR/USD Technical Analysis - EUR/USD Trading: 2022-09-07

EUR/USD Technical Analysis Summary

Below 0,985
Sell Stop

Above 1,018
Stop Loss

Indicator Signal
RSI Neutral
MA(200) Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Neutral

EUR/USD Chart Analysis

EUR/USD Technical Analysis

On the daily timeframe, EURUSD: D1 is in a downtrend and has formed a triangle. He must be out of it down before opening a position. A number of technical analysis indicators have formed downward signals. We do not rule out a bearish movement if EURUSD: D1 falls below the latest low: 0.985. This level can be used as an entry point. Initial risk cap is possible above the latest up fractal, downtrend resistance line and triangle, and Parabolic signal: 1.018. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1.018) without activating the order (0.985), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Forex - EUR/USD

The meeting of the European Central Bank will take place on Thursday, September 8. Will the EURUSD quotes continue to decline?

It is predicted that the ECB will raise the rate by 0.75% to 1.25% from the current level of 0.5%. Inflation in Europe in August this year amounted to +9.1% y/y. It is worth noting that the Federal Reserve System rate is now higher and is 2.5% with US inflation of +8.1% in July. The United States Consumer Price Index for August will be released on September 13th. The next meeting of the Fed will be held on September 21. According to CME FedWatch, the Fed rate will be raised by 0.75% (to 3.25%) with a 76% probability. In theory, higher US rates and lower inflation could push the EURUSD down further. On Wednesday, September 7, significant data on GDP in the 3rd reading for the 2nd quarter will be published in the EU.