Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German PPI for April increased by 0.2% monthly and decreased by 3.3% annualized. Economists predicted a rise of 0.3% and a drop of 3.2%. Forex traders can compare this to the German PPI for March, which expanded by 0.2% monthly and contracted by 2.9% annualized.
The Eurozone Current Account (s.a) for March is predicted at €30.2B. Forex traders can compare this to the Eurozone Current Account (s.a.) for February, reported at €29.5B.
The Eurozone Trade Balance for March is predicted at €19.90B. Forex traders can compare this to the Eurozone Trade Balance for February, reported at €23.60B.
The Canadian CPI for April is predicted to rise by 0.5% monthly and by 2.7% annualized. Forex traders can compare this to the Canadian CPI for March, which accelerated by 0.6% monthly and 2.9% annualized. The Canadian CPI-Median for April is predicted to expand by 2.7% annualized, and the Canadian CPI-Trimmed by 2.9% annualized. Forex traders can compare this to the Canadian CPI-Median for March, which rose by 2.8% annualized, and to the Canadian CPI-Trimmed by 3.1% annualized.
The forecast for the EUR/CAD is cautiously bearish after this currency pair advanced into its horizontal resistance area. Following a bullish crossover, the Tenkan-sen and the Kijun-sen have flatlined, confirming the lack of upside momentum. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud have also flatlined into a narrow cloud vulnerable to a bearish crossover. Traders should also monitor the CCI trading in and out of overbought territory after a negative divergence has formed. A sustained breakdown below 100 could trigger a sell-off, as this technical indicator has plenty of downside potential. 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 1.4790 to 1.4830 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4805
- Take Profit Zone: 1.4650 – 1.4690
- Stop Loss Level: 1.4860
Should price action for the EUR/CAD break out above 1.4830, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4860
- Take Profit Zone: 1.4930 – 1.4980
- Stop Loss Level: 1.4830
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