Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German Trade Balance for August is predicted at €4.0B. Forex traders can compare this to German Trade Balance for July, reported at €5.4B. Exports for August are forecast to increase by 1.1% monthly and Imports by 1.1% monthly. Forex traders can compare this to Exports for July, which contracted 2.1% monthly, and Imports by 1.5% monthly.
French Industrial Production for August is predicted to decrease by 0.3% monthly. Forex traders can compare this to French Industrial Production for July, which dropped 1.6% monthly.
The Spanish Markit Services PMI for September is predicted at 49.8. Forex traders can compare this to the Spanish Markit Services PMI for August, reported at 50.6. The Italian Markit Services PMI for September is predicted at 49.1. Forex traders can compare this to the Italian Markit Services PMI for August, reported at 50.5.
The Final French Markit Services PMI for September is predicted at 53.0, and the Final French Markit Composite PMI at 51.2. Forex traders can compare this to the French Markit Services PMI for August, reported at 46.9, and the French Markit Composite PMI at 50.4.
The Final German Markit Services PMI for September is predicted at 45.4, and the Final German Markit/BME Composite PMI at 45.9. Forex traders can compare this to the German Markit Services PMI for August, reported at 47.7, and the German Markit/BME Composite PMI at 46.9.
The Final Eurozone Markit Services PMI for September is predicted at 48.9, and the Final Eurozone Markit Composite PMI at 48.2. Forex traders can compare this to the Eurozone Markit Services PMI for August, reported at 49.8, and the Eurozone Markit Composite PMI at 48.9.
Canadian Building Permits for August are forecast to decrease by 0.5% monthly. Forex traders can compare this to Canadian Building Permits for July, which plunged 6.6% monthly. The Canadian Trade Balance for August is predicted at C$3.45B. Forex traders can compare this to the Canadian Trade Balance for July, reported at C$4.05B.
The forecast for the EUR/CAD turned bearish after this currency pair ended its massive recovery into its horizontal resistance area. Adding to the bearish outlook are the Kijun-sen, the Tenkan-sen, and the Ichimoku Kinko Hyo Cloud, which flatlined, confirming the absence of short-term bullishness. Traders should monitor the CCI, which began to move lower after recording a higher high in extreme overbought territory. A breakdown below 100 could trigger a sell-off. Can bears take advantage of fading bullishness 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 1.3435 to 1.3545 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3490
- Take Profit Zone: 1.3100 – 1.3165
- Stop Loss Level: 1.3600
Should price action for the EUR/CAD breakout above 1.3545, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3600
- Take Profit Zone: 1.3715 – 1.3810
- Stop Loss Level: 1.3545
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