Weekly Chart
The Euro 6E futures were rejected after moving into the resistance zone at 1.10265. This zone has successfully stopped the bulls from pushing prices higher since the start of 2023, and this may present us with a short opportunity. Let’s look at the daily chart first, though.
Daily Chart
Short Trade Opportunity in Euro FX Futures
We have identified a potential short trade setup in the Euro FX futures market. Currently, the price is trading at 1.09460.
Entry:
- Consider entering a short position at the current market price of 1.09460.
Target:
- Our initial target (Target 1) is set at 1.08280. This level is supported by recent price action and provides a reasonable profit target around the 100 moving average.
Stop Loss:
- To manage risk, place a stop loss at 1.10265. This level is just above recent highs, and bulls need a lot of strength to break this level.
Potential Geopolitical Factors Influencing the Euro
When considering this short trade opportunity in the Euro FX futures market, it’s important to be aware of several geopolitical factors that could influence the Euro’s performance and impact the trade setup:
There are protests and riots all over the world at the moment particularly in the UK. This can have a dramatic affect on the Euro so be aware of sudden price fluctuations.
Upcoming News Events to Watch:
In the coming weeks, several significant events could impact the Euro:
EU Inflation Data: The Eurozone will release its preliminary inflation data for August. Any surprises in inflation figures could affect the Euro’s value, especially as the ECB evaluates its monetary policy stance (euronews) (R Blog – RoboForex).
US Jobs Data: The US is set to release key jobs data, including non-farm payrolls. Strong job numbers could bolster the US Dollar and put downward pressure on the Euro (euronews).
ECB Forum: ECB President Christine Lagarde will speak at the ECB Forum, where her comments on the economic outlook and monetary policy could provide insights that move the Euro (euronews).
UK General Election: The UK’s general election could have indirect effects on the Euro, especially if there are significant shifts in political power that affect Brexit negotiations or trade relations (euronews).
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