Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Final French CPI for September is predicted to decrease 0.2% monthly and increase 2.1% annualized. Forex traders can compare this to the French CPI for August, which increased 0.6% monthly and 1.9% annualized. The Final French Harmonized Spanish CPI for September is predicted to decrease 0.2% monthly and increase 2.7% annualized. Forex traders can compare this to the French Harmonized Spanish CPI for August, which decreased 0.2% monthly and increased 2.4% annualized.

The Final Italian CPI for September is predicted to decrease 0.1% monthly and increase 2.6% annualized. Forex traders can compare this to the Italian CPI for August, which increased 0.4% monthly and 2.0% annualized. The Final Italian Harmonized Italian CPI for September is predicted to increase 1.4% monthly and 3.0% annualized. Forex traders can compare this to the Italian Harmonized Italian CPI for August, which increased 0.2% monthly and 2.5% annualized.

The Eurozone Trade Balance for August is predicted at €16.10B. Forex traders can compare this to the Eurozone Trade Balance for September, reported at €20.70B.

Canadian Wholesale Trade Sales for August are predicted to increase 0.5% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for July, which decreased 2.1% monthly.

The forecast for the EUR/CAD turned bullish after price action stabilized at support with technical indicators pointing towards a counter-trend rally. While the Tenkan-sen resumes its downtrend, the Kijun-sen entered a sideways trend, suggesting short-term selling pressure is easing. The Ichimoku Kinko Hyo Cloud shows bearish dominance, but the CCI formed a positive divergence after dropping into extreme oversold territory. Traders should wait for a breakout above -100 before entering their buy orders. Will bulls mount a short-covering rally and pressure the EUR/CAD into 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 1.4290 to 1.4395 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.4340
• Take Profit Zone: 1.4660 – 1.4710
• Stop Loss Level: 1.4200

Should price action for the EUR/CAD breakdown below 1.4290, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.4200
• Take Profit Zone: 1.4000 – 1.4070
• Stop Loss Level: 1.4290

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.