Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Eurozone CPI for November is predicted to decrease by 0.5% monthly and increase by 2.4% annualized. Forex traders can compare this to the Eurozone CPI for October, which expanded by 0.1% monthly and 2.9% annualized. The Eurozone Core CPI for November is predicted to contract by 0.6% monthly and accelerate by 3.6% annualized. Forex traders can compare this to the Eurozone Core CPI for October, which rose by 0.2% monthly and 4.2% annualized. The Eurozone Harmonized Core CPI for November is predicted to decrease by 0.4% monthly and increase by 4.2% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for October, which accelerated by 0.2% monthly and 5.0% annualized.
The Euro could face increased volatility following speeches by Frank Elderson, a member of the Executive Board and Vice-Chair of the Supervisory Board of the European Central Bank, and Andrea Enria, the Chair of the Supervisory Board of the European Central Bank.
The Canadian CPI for November is predicted to decrease by 0.2% monthly and increase by 2.9% annualized. Forex traders can compare this to the Canadian CPI for October, which rose by 0.1% monthly and 3.1% annualized. The Canadian CPI-Median for November is predicted to expand by 3.3% annualized, and the Canadian CPI-Trimmed by 3.3% annualized. Forex traders can compare this to the Canadian CPI-Median for October, which rose by 3.6% annualized, and to the Canadian CPI-Trimmed by 3.5% annualized.
The Canadian Industrial Product Price Index for November is predicted to decrease by 0.8% monthly, and the Canadian Raw Materials Price Index is predicted to drop by 3.5% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for October, which contracted by 1.0% monthly, and to the Canadian Raw Materials Price Index, which decreased by 2.5% monthly.
The forecast for the EUR/CAD remains bearish after this currency pair experienced a 400+ pips selloff. Volatility could resume following a bearish crossover between the Kijun-sen and the Tenkan-sen, which both flatlined. Adding to the rising downside momentum is the gradually narrowing Ichimoku Kinko Hyo Cloud, with the Senkou Span B flat but the Senkou Span A drifting lower. Traders should also monitor the CCI after its breakout from extreme oversold territory followed by a momentum loss. This technical indicator has plenty of downside potential, and a move below -100 could add to selling pressure. Can bears maintain control over the EUR/CAD and drive price action 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 1.4565 to 1.4660 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4635
- Take Profit Zone: 1.4235 – 1.4325
- Stop Loss Level: 1.4745
Should price action for the EUR/CAD breakout above 1.4660, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4745
- Take Profit Zone: 1.4825 – 1.4925
- Stop Loss Level: 1.4660
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