Source: PaxForex Premium Analytics Portal, Fundamental Insight
French Consumer Spending for September increased by 0.2% monthly. Economists predicted a rise of 0.4%. Forex traders can compare this to French Consumer Spending for August, which dropped 0.6% monthly.
The Preliminary French GDP for the third quarter increased by 0.1% quarterly and 0.7% annualized. Forex traders can compare this to the fourth quarter GDP, which rose 0.6% quarterly and 1.2% annualized.
The German Import Price Index for September rose 1.6% monthly and plunged 14.3% annualized. Economists predicted a rise of 0.7% and a drop of 15.3%. Forex traders can compare this to the German Import Price Index for August, which increased 0.4% monthly and collapsed 16.4% annualized.
German Retail Sales for September decreased by 0.8% monthly and 4.3% annualized. Economists predicted a rise of 0.5% and a drop of 4.0%. Forex traders can compare this to German Retail Sales for August, which decreased by 1.2% monthly and 2.3% annualized.
The Preliminary French CPI for October increased 0.1% monthly and 4.0% annualized. Economists predicted an increase of 0.2% and 4.0%. Forex traders can compare this to the French CPI for September, which decreased 0.5% monthly and accelerated by 4.9% annualized. The French Harmonized CPI for October rose 0.2% monthly and 4.5% annualized. Economists predicted an increase of 0.2% and 4.5%. Forex traders can compare this to the French Harmonized CPI for September, which dropped 0.6% monthly and surged 5.7% annualized.
The Preliminary Italian GDP for the third quarter is predicted to expand 0.1% quarterly and 0.1% annualized. Forex traders can compare this to the Italian GDP for the second quarter, which contracted by 0.4% quarterly and expanded by 0.3% annualized.
The Preliminary Italian CPI for October is predicted to expand 0.2% monthly and 0.3% annualized. Forex traders can compare this to the Italian CPI for September, which rose by 0.2% monthly and surged by 5.3% annualized. The Preliminary Italian Harmonized CPI for October is predicted to increase by 0.5% monthly and 2.3% annualized. Forex traders can compare this to the Italian Harmonized CPI for September, which rose 1.7% monthly and accelerated by 5.6% annualized.
The Eurozone CPI for October is predicted to rise by 3.1% annualized and the Eurozone Core CPI by 4.2% annualized. Forex traders can compare this to the Eurozone CPI for September, which increased 4.3% annualized, and to the Eurozone Core CPI, which rose 4.5% annualized.
The preliminary Eurozone GDP for the third quarter is predicted flat at 0.0% quarterly and to rise by 0.2% annualized. Forex traders can compare this to the Eurozone GDP for the second quarter, which expanded by 0.1% quarterly and 0.5% annualized.
The Canadian GDP for August is predicted to increase by 0.1% monthly. Forex traders can compare this to the Canadian GDP for July, which was flat at 0.0% monthly.
The forecast for the EUR/CAD turned cautiously bearish after this currency pair accelerated into its horizontal resistance area. The Ichimoku Kinko Hyo Cloud has a bearish bias, with the Senkou Span B flat and the Senkous Span A drifting lower. The Kijun-sen also flatlined, but volatility could remain high with the Tenkan-sen moving higher. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence formed. A breakdown below 100 could trigger the expected sell-off. 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 1.4620 to 1.4710 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4670
- Take Profit Zone: 1.4325 – 1.4280
- Stop Loss Level: 1.4730
Should price action for the EUR/CAD breakout above 1.4710, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4730
- Take Profit Zone: 1.4820 – 1.4880
- Stop Loss Level: 1.4710
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