Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final French CPI for February is predicted to increase by 0.8% monthly and 2.9% annualized. Forex traders can compare this to the French CPI for January, which decreased by 0.3% monthly and expanded by 3.1% annualized. The Final French Harmonized CPI for February is predicted to rise by 0.9% monthly and by 3.1% annualized. Forex traders can compare this to the French Harmonized CPI for January, which dropped by 0.2% monthly and increased by 3.4% annualized.
The Final Italian CPI for February is predicted to rise 0.1% monthly and 0.8% annualized. Forex traders can compare this to the Italian CPI for January, which increased by 0.3% monthly and 0.8% annualized. The Final Italian Harmonized CPI for February is predicted to expand by 0.1% monthly and by 0.9% annualized. Forex traders can compare this to the Italian Harmonized CPI for January, which dropped by 1.1% monthly and rose by 0.9% annualized.
Italian Retail Sales for January are predicted to increase by 0.2% monthly. Forex traders can compare this to Italian Retail Sales for December, which contracted by 0.1% monthly.
The Italian Trade Balance for January is predicted at €6.220B. Forex traders can compare this to the Italian Trade Balance for December, reported at €5.614B.
Canadian Housing Starts for February are predicted at 227.0K. Forex traders can compare this to Canadian Housing Starts for January, which came in at 223.6K.
Canadian International Securities Transactions for January are predicted at C$2.05B. Forex traders can compare this to Canadian International Securities Transactions for December, which came in at C$10.44B.
Canadian Wholesale Trade Sales for January are predicted to decrease by 0.6% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for December, which rose by 0.3% monthly.
The forecast for the EUR/CAD turned bearish after this currency pair advanced into its horizontal resistance area. Short-term volatility could increase after the Tenkan-sen and the Kijun-sen flatlined, with price action above the Tenkan-sen. A breakdown may trigger the next wave of selling. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are moving higher following a bullish crossover, injecting additional volatility. Traders should also monitor the CCI after a negative divergence in extreme oversold territory led to a breakdown. A move below zero could accelerate the pending 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 1.4715 to 1.4745 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4725
- Take Profit Zone: 1.4610 – 1.4640
- Stop Loss Level: 1.4760
Should price action for the EUR/CAD breakout above 1.4745, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4760
- Take Profit Zone: 1.4795 – 1.4815
- Stop Loss Level: 1.4745
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