Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Retail Sales for April decreased by 5.5% monthly and increased by 4.4% annualized. Economists predicted a decrease of 2.0% and an increase of 10.1%. Forex traders can compare this to German Retail Sales for March, which increased by 7.7% monthly and 11.0% annualized. The Eurozone PPI for April is predicted to increase by 0.9% monthly and 7.3% annualized. Forex traders can compare this to the Eurozone PPI for March, which increased by 1.1% monthly 4.3% annualized.
Canadian Building Permits for April are predicted to decrease by 4.8% monthly. Forex traders can compare this to Canadian Building Permits for March, which increased by 5.7% monthly.
The forecast for the EUR/CAD remains bullish after this currency pair ended its sell-off and started to drift higher.
With the Tenkan-sen entering a sideways trend, the Kijun-sen halted its descend, suggesting the start of a temporary bottom-forming process. The Ichimoku Kinko Hyo Cloud also ended its move to the downside and now poses the next resistance level. After the CCI briefly advanced into extreme overbought territory, it corrected and has more upside potential. Can bulls take control of the EUR/CAD and force price action into its next 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 1.4700 to 1.4780 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4740
- Take Profit Zone: 1.5140 – 1.5190
- Stop Loss Level: 1.4640
Should price action for the EUR/CAD breakdown below 1.4700, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4640
- Take Profit Zone: 1.4500 – 1.4540
- Stop Loss Level: 1.4700
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
