EURUSD now is at a level that we have never seen before since 2003. We saw a few moments when EUR is lower than USD last week.
This week there will be a European Central Bank (ECB) Interest Rate Decision announcement on 21 Jul and next week there will be an FOMC Interest Rate Decision and Press Conference on 27 Jul.
As this is the first rate hike for ECB since 2011 and especially EURUSD has already dropped significantly to touch 0.99 last week, this first rate hike might give EUR some confidence to rally for a little while before the FOMC meeting. On the other hand, there are some analysts who believe that EURUSD might drop to as low as 0.95.
Last week’s US inflation rate of 9.1% is another factor that might make the USD bullish as now the market has priced in the potential of a 1% interest rate hike in the next FOMC meeting. Bank of Canada announced a 1% interest rate hike last week, which definitely increases the chance that US Federal Reserve might follow the same in the coming weeks.
Recommendation
With this outlook, as usual, and to be on the safe side, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading for these two periods. One is for the ECB interest rate decision from 20 July 2022 to 22 July 2022 and one is for the FOMC Interest rate decision from 26 July 2022 to 28 July 2022. You can use the stop trading period feature in the EA to do that. You can also decide to extend the stop trading period (eg, till 24 July or 30 July and only start trade on the week after next) if you would like.
Disclaimer – Please note that Limitless Trading is not liable for our recommendation and is not responsible for any loss or profit caused by this recommendation. You should assess your personal circumstances and perform your own research to make decisions for your trading.
