Chapter 27 EURUSD is kept in a downtrend
14//09/2023
Summary
Eurozone interest rate decision leads the market
Fundamental analysis
Fundamentally on this pair, we watched the data release in Europe today the interest rate decision has been increased to 4.5% and Christine Lagarde the president of the European Central Banks said this is the last time will be increased which means no more increase for the near future which this give the euro weakness, On the other hand, we see the positive data in The USA the PPI YoY has increased to 1.6% plus all the positive data for this week and the previous week will give strength for the USD keep moving forward.
Eurozone ECB Main Refinancing Rate
Prev.: 4.25%
Fcst: 4.25%
Act.: 4.5%
U.S. PPI YoY
Prev.: 0.8%
Fcst: 1.2%
Act.: 1.6%
Technical analysis
In this 4-hour diagram chart, the market price is now 1.06710 We expect the price to move back up to the previous supply zone at 1.07800 to make a false breakout at the top of the down channel and from there the price will turn back down to the old demand zone at 1.05500 following the daily chart downtrend with 20 moving average pointing down.
Trading Recommendation
Trading Direction: Short
Entry Price: 1.07702
Target Price: 1.05666
Stop Loss: 1.08727
