Source: PaxForex Premium Analytics Portal, Fundamental Insight
The French Unemployment Rate for the second quarter was reported at 7.3%. Economists predicted a reading of 7.5%. Forex traders can compare this to the French Unemployment Rate for the first quarter, which stood at 7.5%.
The final German CPI for July rose 0.3% monthly and 2.3% annualized. Economists predicted an increase of 0.3% and 2.3%. Forex traders can compare this to the German CPI for June, which expanded 0.1% monthly and 2.2% annualized. The final EU Harmonized German CPI for July increased by 0.5% monthly and 2.6% annualized. Economists predicted an expansion of 0.5% and 2.6%. Forex traders can compare this to the EU Harmonized German CPI for June, which rose 0.2% monthly and 2.5% annualized.
The final Italian CPI for July is predicted to rise 0.5% monthly and 1.3% annualized. Forex traders can compare this to the Italian CPI for June, which expanded 0.1% monthly and 0.8% annualized. The final Italian Harmonized CPI for July is predicted to decrease by 0.8% monthly and rise by 1.7% annualized. Forex traders can compare this to the Italian Harmonized CPI for June, which expanded by 0.2% monthly and 0.9% annualized.
The Canadian Employment Report for July is predicted to show the addition of 26.9K jobs and an Unemployment Rate of 6.5%. Forex traders can compare this to the Canadian Employment Report for June, which showed the loss of 1.4K jobs and an Unemployment Rate of 6.4%.
The forecast for the EUR/CAD remains bearish after its horizontal resistance area rejected this currency pair. Price action trades above its ascending Kijun-sen but below its flat Tenkan-sen, and short-term volatility could increase. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud show signs of exhaustion and are entering a sideways trend, hinting at a lack of upside momentum. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator has plenty of downside potential to lead price action lower. Can bears maintain control over the EUR/CAD and force this currency pair into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/CAD remain inside the or breakdown below the 1.4965 to 1.5035 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4990
- Take Profit Zone: 1.4710 – 1.4755
- Stop Loss Level: 1.5060
Should price action for the EUR/CAD break out above 1.5035, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5060
- Take Profit Zone: 1.5135 – 1.5225
- Stop Loss Level: 1.5035
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