Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German Trade Balance for January is predicted at €11.0B. Forex traders can compare this to German Trade Balance for December, reported at €10.0B. Exports for January are predicted to increase by 1.5% monthly, and Imports by 2.0% monthly. Forex traders can compare this to Exports for July, which contracted 6.3% monthly, and Imports by 6.1% monthly.
French Industrial Production for January is predicted to increase by 0.1% monthly. Forex traders can compare this to French Industrial Production for December, which rose 1.1% monthly.
The Spanish S&P Global Services PMI for February is predicted at 54.3. Forex traders can compare this to the Spanish S&P Global Services PMI for January, reported at 52.7. The Italian S&P Global Services PMI for February is predicted at 53.1. Forex traders can compare this to the Italian S&P Global Services PMI for January, reported at 51.2.
The Final French S&P Global Services PMI for February is predicted at 52.8, and the Final French S&P Global Composite PMI at 51.6. Forex traders can compare this to the French S&P Global Services PMI for January, reported at 49.4, and the French S&P Global Composite PMI at 49.1.
The Final German S&P Global Services PMI for February is predicted at 51.3, and the Final German S&P Global/BME Composite PMI at 51.1. Forex traders can compare this to the German S&P Global Services PMI for January, reported at 50.7, and the German S&P Global/BME Composite PMI at 49.9.
The Final Eurozone S&P Global Services PMI for February is predicted at 53.0, and the Final Eurozone S&P Global Composite PMI at 52.3. Forex traders can compare this to the Eurozone S&P Global Services PMI for January, reported at 50.8, and the Eurozone S&P Global Composite PMI at 50.3.
The Final Italian GDP for the fourth quarter is predicted to decrease by 0.1% quarterly and contract by 1.7% annualized. Forex traders can compare this to the Italian GDP for the third quarter, which rose 0.5% quarterly and 2.6% annualized.
The Eurozone PPI for January is predicted to decrease by 0.3% monthly and surge by 17.7% annualized. Forex traders can compare this to the Eurozone PPI for December, which rose 1.1% monthly and sky-rocketed 24.6% annualized.
Canadian Building Permits for January are predicted to increase by 1.5% monthly. Forex traders can compare this to Canadian Building Permits for December, which plunged 7.3% monthly.
The forecast for the EUR/CAD turned bearish after the Ichimoku Kinko Hyo Cloud completed a bearish crossover. After the Kijun-sen and the Tenkan-sen flatlined, volatility could increase as bulls and beats square off. Traders should also monitor the CCI after this technical indicator has completed a breakdown down from extreme overbought territory. A move below zero could tip the balance into bearish conditions. Can bears overpower bulls and force the EUR/CAD 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 1.4375 to 1.4440 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4415
- Take Profit Zone: 1.4135 – 1.4235
- Stop Loss Level: 1.4490
Should price action for the EUR/CAD breakout above 1.4440, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4490
- Take Profit Zone: 1.4450 – 1.4615
- Stop Loss Level: 1.4440
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