Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Italian CPI for June is predicted to rise 0.1% monthly and 0.8% annualized. Forex traders can compare this to the Italian CPI for May, which expanded 0.2% monthly and 0.8% annualized. The Final Italian Harmonized CPI for June is predicted to accelerate by 0.2% monthly and by 0.9% annualized. Forex traders can compare this to the Italian Harmonized CPI for May, which rose by 0.2% monthly and 0.8% annualized.
The Italian Trade Balance for May is predicted at €3.550B. Forex traders can compare this to the Italian Trade Balance for April, reported at €4.807B.
The German ZEW Survey Current Situation Index for July is predicted at -74.3, and the German ZEW Survey Economic Sentiment Index at 41.2. Forex traders can compare this to the German ZEW Survey Current Situation Index for June, reported at -73.8, and the German ZEW Survey Economic Sentiment Index at 47.5. The Eurozone ZEW Survey Economic Sentiment Index for July is predicted at 48.1. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for June, reported at 51.3.
The Eurozone Trade Balance for May is predicted at €18.00B. Forex traders can compare this to the Eurozone Trade Balance for April, reported at €15.00B.
Canadian Housing Starts for June are predicted at 255.0K. Forex traders can compare this to Canadian Housing Starts for May, which were reported at 264.5K.
The Canadian CPI for June is predicted to rise by 0.1% monthly and by 2.4% annualized. Forex traders can compare this to the Canadian CPI for May, which accelerated by 0.6% monthly and 2.4% annualized. The Canadian CPI-Median for June is predicted to expand by 2.7% annualized, and the Canadian CPI-Trimmed by 2.8% annualized. Forex traders can compare this to the Canadian CPI-Median for May, which rose by 2.8% annualized, and to the Canadian CPI-Trimmed by 2.9% annualized.
The forecast for the EUR/CAD turned bearish after this currency pair reached its horizontal resistance area. The Tenkan-sen and the Kijun-sen sen have flattened following a bullish crossover. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud also flatlined after a bearish crossover, suggesting a potential short-term volatility rise. Traders should also monitor the CCI in extreme oversold territory, where it formed a lower high. A breakdown below 100 could trigger the next sell-off. Can bears regain control over the EUR/CAD and force 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 1.4880 to 1.4925 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4900
- Take Profit Zone: 1.4710 – 1.4755
- Stop Loss Level: 1.4955
Should price action for the EUR/CAD break out above 1.4925, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4955
- Take Profit Zone: 1.500 – 1.5045
- Stop Loss Level: 1.4925
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