EURUSD potential Forecast | Monday 13th February 2023
Hello,
I rely on ICT concepts for my trading. I would like to share a trade idea for Monday, February 13th, 2023.
Fundamentals Recap on last week
Fed Chairman Powell's comments impact market, causing shifts in risk appetite and dollar. Market focuses on Fed's reaction to potential recession, not US entering one. Tension over possibility of Fed cutting rates weakens dollar.
Federal Reserve Bank of NY President John Williams expects interest rates to increase and policy to remain restrictive for a few years to control inflation, which may reach 2%. The interest rate has been raised by a quarter point to 4.5-4.75% and may continue to increase at the same pace depending on incoming data.
Easing inflation and a strong labor market are helping consumers feel better about the economy this month, according to a closely watched survey released Friday by the University of Michigan.
Idea
With price causing a BOS, I'm expecting price to likely retest the 1.07115 area where the H1 FVG and relative equal highs are located, indicating liquidity. To add confluence to this area, there is the 61.8% Fibonacci line within the FVG.
I then expect price to possibly move towards the 1.05902 area, where the H4 BPR is located.
For entries, it's important to use confirmations on smaller timeframes and to always exercise caution while trading.
Thank you,
Chen Yongjin
I rely on ICT concepts for my trading. I would like to share a trade idea for Monday, February 13th, 2023.
Fundamentals Recap on last week
Fed Chairman Powell's comments impact market, causing shifts in risk appetite and dollar. Market focuses on Fed's reaction to potential recession, not US entering one. Tension over possibility of Fed cutting rates weakens dollar.
Federal Reserve Bank of NY President John Williams expects interest rates to increase and policy to remain restrictive for a few years to control inflation, which may reach 2%. The interest rate has been raised by a quarter point to 4.5-4.75% and may continue to increase at the same pace depending on incoming data.
Easing inflation and a strong labor market are helping consumers feel better about the economy this month, according to a closely watched survey released Friday by the University of Michigan.
Idea
With price causing a BOS, I'm expecting price to likely retest the 1.07115 area where the H1 FVG and relative equal highs are located, indicating liquidity. To add confluence to this area, there is the 61.8% Fibonacci line within the FVG.
I then expect price to possibly move towards the 1.05902 area, where the H4 BPR is located.
For entries, it's important to use confirmations on smaller timeframes and to always exercise caution while trading.
Thank you,
Chen Yongjin
Comment:
Took buys up to the H1 FVG, new idea posted for Pre-CPI
