Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Retail Sales for April are predicted to decrease 0.2% monthly and increase by 4.0% annualized. Forex traders can compare this to German Retail Sales for March, which contracted 0.1% monthly and 2.7% annualized.
The Spanish Manufacturing PMI for May is predicted at 52.0. Forex traders can compare this to the Spanish Markit Manufacturing PMI for April, reported at 53.3.
The Italian Manufacturing PMI for May is predicted at 53.5. Forex traders can compare this to the Italian Manufacturing PMI for April, reported at 54.5.
The Final French Manufacturing PMI for May is predicted at 54.5. Forex traders can compare this to the French Manufacturing PMI for April, reported at 55.7.
The Final German Manufacturing PMI for May is predicted at 54.7. Forex traders can compare this to the German Manufacturing PMI for April, reported at 54.6.
The Final Eurozone Manufacturing PMI for May is predicted at 54.4. Forex traders can compare this to the Eurozone Manufacturing PMI for April, reported at 55.5.
The Italian Unemployment Rate for April is predicted at 8.3%. Forex traders can compare this to the Italian Unemployment Rate for March, reported at 8.3%.
The Eurozone Unemployment Rate for April is predicted at 6.8%. Forex traders can compare this to the Eurozone Unemployment Rate for March, reported at 6.8%.
The Bank of Canada is predicted to increase interest rates by 50 basis points to 1.50%. Forex traders can compare this to the previous Bank of Canada Interest Rate Decision, where interest rates were raised by 50 basis points to 1.00%. Given ongoing global inflationary pressures, the Canadian central bank may follow its peers in tightening monetary policy throughout 2022 and beyond. Traders should expect the Canadian Dollar to experience a rise in volatility as traders weigh the economic slowdown versus higher interest rates.
The forecast for the EUR/CAD remains bullish as price action recovers from its sell-off after reversing from its horizontal support area. Confirming the lack of bearish pressures is the Ichimoku Kinko Hyo Cloud after flatlining. The flat Kijun-sen confirms the absence of short-term bearishness, and the ascending Tenkan-sen points to bullishness. Traders should monitor the CCI after it fell from extreme overbought territory and has moved below zero. This technical indicator may graze the-100 level before reversing, and traders should wait for it before entering buy orders. Can bulls maintain control and extend the EUR/CAD recovery 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 1.3500 to 1.3600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3565
- Take Profit Zone: 1.3895 – 1.3980
- Stop Loss Level: 1.3460
Should price action for the EUR/CAD breakdown below 1.3500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3460
- Take Profit Zone: 1.3325 – 1.3385
- Stop Loss Level: 1.3500
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