European Interest Rate Decision
Hello Platinum Traders,
What an eventful week we had last week with NFP and getting the deviation factor almost to the T!
As usual, it is very hard for me to post with consistency due to time constraints but when I do get a chance I always do. Thank you very much for your support on LinkedIn and keep the technical messages coming with positive energy and I will carry on posting every week. It’s always nice to be able to assist and help other traders or individuals that are trying to learn how to trade.
At Platinum, this week we have quite a few trades on the horizon but one particular event that takes the grand prize for me is the European Interest Rate Decision.
As traders, we not only should be able aware of fundamental events but also be able to trade them when the timing is correct. Please feel free to download our eBook to learn a little bit more about trading fundamental events.
Today, what I wanted to talk about is the EUR/USD. Now if you are new to FOREX trading, do not worry please book a free 30-minute consultation and I will show you how easy it is to trade currencies.
Let’s talk about and understand what is going on with the European Interest Rate Decision
EUR/USD was still struggling with the strength of the US dollar that continued dominating the scene. The main event of the week is undoubtedly the ECB meeting. Will Draghi drag down the euro or let it rise? Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD. Euro-zone inflation came out worse than expected with 0.2% on the headline and 0.8% on the core figure. This keeps the pressure on Draghi. In the US, the impact from the Jackson Hole Symposium continued boosting the dollar and sent EUR/USD back to the post Brexit levels. The initial reaction from the weak NFP was a rebound in EUR/USD but that did not last and the pair ended the week lower.
Rate decision: Thursday, the European Interest Rate Decision is at 12:45 and the press conference by ECB President Mario Draghi is scheduled for 13:30.
Since the ECB threw the kitchen sink back in March, it has mostly been busy implementing the new measures such as the second TLTRO and the buying of corporate bonds. So far, the policy has contributed to better growth but inflation remains weak. With monthly buys of 80 billion euros of bonds per month, the main lending rate standing at 0% and a negative deposit rate of -0.40%, it seems the central bank is close to its limits. Draghi has been upping his rhetoric calling for governments to do more but it fell on deaf ears so far. No new drastic measures are expected from the ECB this time. They could extend the QE program beyond the current end-date of March 2017. They could also ease some of their bond-buying restrictions. The ECB also releases new forecasts for inflation, and this will be interesting to watch as well. Draghi and his colleagues would like to keep the pressure on the euro to assist exporters and to lift prices of imported goods. However Draghi is not the magician he used to be.
IMPORTANT NEWS EVENTS TO KEEP AN EYE OUT FOR ON THE EURO GOING FORWARD:
- German Factory Orders: Tuesday, 7:00. The continent’s powerhouse saw a drop of 0.4% in orders back in June. A bounce back could be seen for July with +0.5%.
- Retail PMI: Tuesday, 9:10. Market’s purchasing managers’ index for the retail sector has been in contraction zone for a while. In July, the indicator stood at 48.9 points.
- Revised GDP: Tuesday, 9:00. According to the data, we have so far, the euro-zone economies grew by 0.3% in Q2 2016. This average growth is better than contraction but still somewhat worrying. Confirmation is expected now.
- German Industrial Production: Wednesday, 7:00. Industrial output in the powerhouse of the old continent rose by 0.8% in June. Another small rise by 0.1% is predicted now.
- French Trade Balance: Wednesday, 7:45. Contrary to Germany, the second largest economy has an ongoing trade deficit. A gap of 3.4 billion euros was recorded in June. A similar figure is on the cards for July which is expected to be wider at -3.7 billion.
- German Trade Balance: Friday, 7:00. Germany’s wide trade surplus keeps the euro bid. A level of 21.7 billion euros was seen in June. Another similar read is on the cards: 21.2 billion.
- French Industrial Output: Friday, 7:45. France’s industrial production fell by 0.8% in June, in a disappointing read. It could rebound now with +0.2%.
WOULD YOU LIKE TO TRADE ALONG SIDE A PROFESSIONAL TRADER THEN MESSAGE ME FOR A FREE SESSION?
Platinum Trading Strategy for the EURO in the Short Term
When someone first hears the words technical analysis, they tend to over think and start believing that trading is too difficult and time consuming. Believe me every single chart that you can see that I have published is very basic just outlining how the trade is produced.
We have a belief here at Platinum that –
Perfect Trade = Perfect Fundamental + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management
So with the above in mind, let’s talk about the piptastic opportunities that are coming to the Platinum Trading Floor in the month of September.
Before I move ahead ALWAYS USE STOP LOSSES IN TRADING AND ALSO WE ARE NOT GIVING YOU TRADING ADVICE THESE ARE JUST OUR VIEWS ON THE MARKETS.
IMPORTANT LEVELS TO KEEP AN EYE ON FOR BUYS AND SELLS AND HOW TO TRADE THE EUROPEAN INTEREST RATE DECISION:
From this chart , it is very clear that we have a beautiful Double Top pattern in formation.We are waiting for a pullback to the 1.1350 Area which should hold as resistance and also act as the 2nd Top for the euro trade. We have also outlined the various major supply and demand areas on the chart which you should place alerts on and trade with 20 pip stop losses except for the longer term trade.If you can learn to chart like this then one chart can be worth over 300 fx Pips as a minimum and when you equate that at £10 a point it could earn you close to £3000.00.
The chart that says it all:
How to trade the Euro the Platinum Way!
Short the EUR/USD @ 1.1350 or nearest zone with a 40 Pips stop loss and a target of 1.0935
All other buy and sell levels are clearly denoted by the red and green levels on the chart.
There is a potential of over 300 Pips on this chart, follow the rules and bank the money!
All trades should have a stop loss not more than 40 Pips as stated on the chart. Place alerts at these level and watch the profitability in front of your eyes and we can have over a 200 Pips move in one day, so please learn Sell and hold.
So how can you trade the above technical events? Book a one 2 oneConsultation with Platinum Senior trader today!
Have a beautiful day!
Live from the Trading floor!
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