Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German CPI for June is predicted to increase 0.1% monthly and 7.6% annualized. Forex traders can compare this to the German CPI for May, which rose 0.9% monthly and 7.9% annualized. The Final EU Harmonized German CPI for June is predicted to decrease 0.1% monthly and increase 8.2% annualized. Forex traders can compare this to the EU Harmonized German CPI for May, which rose 1.1% monthly and 8.7% annualized.
The Final French CPI for June is predicted to rise 0.7% monthly and 5.8% annualized. Forex traders can compare this to the French CPI for May, which expanded 0.7% monthly and 5.2% annualized. The Final French Harmonized CPI for June is predicted to increase 0.8% monthly and 6.5% annualized. Forex traders can compare this to the French Harmonized CPI for May, which rose 0.8% monthly and 5.8% annualized.
The Final Spanish CPI for June is predicted to surge 1.8% monthly and 10.2% annualized. Forex traders can compare this to the Spanish CPI for May, which rose 0.8% monthly and 8.7% annualized. The Final Spanish Harmonized Spanish CPI for June is predicted to accelerate 1.8% monthly and 10.0% annualized. Forex traders can compare this to the Spanish Harmonized CPI for May, which increased 0.7% monthly and 8.5% annualized.
Eurozone Industrial Production for May is predicted to rise 0.3% monthly and 0.3% annualized. Forex traders can compare this to Eurozone Industrial Production for April, which increased 0.4% monthly and dropped 2.0% annualized.
The Bank of Canada is predicted to increase interest rates by 75 basis points to 2.25%. Forex traders can compare it to the previous Bank of Canada Interest Rate Decision, where interest rates were raised by 50 basis points to 1.50%.
The forecast for the EUR/CAD turned bullish after this currency pair collapsed into a horizontal support area dating back two decades, from where bulls are likely to step in. Adding to a positive outlook is the Ichimoku Kinko Hyo Cloud, which narrowed, but does not show signs of extreme bearishness. After the Kijun-sen and the Tenkan-sen drifted lower, they started flattening out, hinting at an absence of bearish pressures. Traders should monitor the CCI, which began a rounding bottoming process in extreme oversold territory after recording a higher low. A breakout above -100 could trigger the next move higher. Can bulls gather enough power to force the EUR/CAD into its horizontal resistance 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 breakout above the 1.3000 to 1.3100 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3030
- Take Profit Zone: 1.3440 – 1.3535
- Stop Loss Level: 1.2945
Should price action for the EUR/CAD breakdown below 1.3000, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2860
- Take Profit Zone: 1.2710 – 1.2770
- Stop Loss Level: 1.3000
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