The Euro has remained within a well-defined range over the past 6 trading sessions, with most of the price action between a low of 1.11529 and a high of 1.12471. That tight range has also include some very volatile days, such as last Tuesday when the market opened at 1.12105 reached a high of 1.12381, tested a low at 1.11371 to then close at 1.12039.
The market began to take on bets Tuesday that the Federal Reserve would raise interest rates sooner than later, probably this December meeting. While in the evening on the same day rumors emerged that the ECB will begin tapering the amount of assets it buys in its quantitative easing program. Bonds in the Euro area took a hit, but at the same time the Euro rallied and traded above 1.1200 for most of Wednesday.
More volatility may occur tomorrow when the US releases Non-Farm Payroll data for September. The markets have been watching this number closely as the Federal Reserve chair Ms. Yellen has repeatedly stated that job growth is one of their main metrics when considering the timing for an interest rate hike.
Data will be released at 1:30pm and is expected at 172k new jobs compared to last month's 151k. Any large deviations of this number from forecast may create volatility in the EURUSD.
If you feel that EURUSD will increase in price after the number is released then all you need to do is buy EURUSD with Deal Cancellation protection. This feature allows you to take a position and set up a maximum stop loss, which if hit during the first hour, will only cost you the premium you paid to buy Deal Cancellation protection.
Deal Cancellation gives you the option to close a trade, during 1 hour, losing no more than the premium you paid, while allowing you to gain from any positive movement. The screenshot below shows that to sell €35,000 with a stop loss of €312.13 would cost €15.91 to gain Deal Cancellation protection.
If the market falls from 1.12117 you would be able to close your trade with a profit less the cost of the Deal Cancellation protection. Let's say price declines to 1.11317, your profit would be equal to €280 – €15.91 = €264.09, while your maximum risk for one hour would be €15.91.
The content provided is made available to you by ORE Tech Ltd for educational purposes only, and does not constitute any recommendation and/or proposal regarding the performance and/or avoidance of any transaction (whether financial or not), and does not provide or intend to provide any basis of assumption and/or reliance to any such transaction.
Recommended Content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.