Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Eurozone CPI for October is predicted to increase 0.8% monthly and 4.1% annualized. Forex traders can compare this to the Eurozone CPI for September, which increased 0.5% monthly and 4.1% annualized. The Eurozone Core CPI for October is predicted to increase 0.3% monthly and 2.1% annualized. Forex traders can compare this to the Eurozone Core CPI for September, which increased 0.3% monthly and 2.1% annualized. The Eurozone Harmonized Core CPI for October is predicted to increase 0.3% monthly and 2.1% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for September, which increased 0.4% monthly and 2.1% annualized.
The Canadian CPI for October is predicted to increase 0.7% monthly and 4.7% annualized. Forex traders can compare this to the Canadian CPI for September, which increased 0.2% monthly and 4.4% annualized.
The forecast for the EUR/CAD is turning slowly bullish after a massive sell-off depleted bearish momentum. Traders should prepare for short-term volatility as the Kijun-sen and the Tenkan-sen maintain their downtrend, but the Ichimoku Kinko Hyo Cloud shows signs of stabilization after the Senkou Span B turned flat. Adding to bullish momentum is the CCI, which started to ascend inside extreme oversold territory. A breakout above -100 can spark a relief rally in this currency pair. Will bulls manage to pressure the EUR/CAD into a reversal until price action can challenge 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 1.4115 to 1.4395 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4200
- Take Profit Zone: 1.4620 – 1.4695
- Stop Loss Level: 1.4050
Should price action for the EUR/CAD breakdown below 1.4115, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4050
- Take Profit Zone: 1.3785 – 1.3860
- Stop Loss Level: 1.4115
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