Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German CPI for August was reported flat at 0.0% monthly and increased 3.9% annualized. Economists predicted a flat reading of 0.0% and an increase of 3.9% annualized. Forex traders can compare this to the German CPI for July, which increased 0.9% monthly and 3.8% annualized. The Final EU Harmonized German CPI for August increased 0.1% monthly and 3.4% annualized. Economists predicted an increase of 0.1% and 3.4%. Forex traders can compare this to the EU Harmonized German CPI for July, which increased 0.5% monthly and 3.1% annualized.
French Industrial Production for July increased 0.3% monthly. Economists predicted an increase of 0.4%. Forex traders can compare this to French Industrial Production for June, which increased 0.6% monthly.
Spanish Industrial Production for July is predicted to increase by 5.9% annualized. Forex traders can compare this to Spanish Industrial Production for June, which increased 11.1% annualized. Italian Industrial Production for July is predicted to increase 0.1% monthly and 5.4% annualized. Forex traders can compare this to Italian Industrial Production for June, which increased 1.0% monthly and 13.9% annualized.
The Canadian Employment Report for August is predicted to show the creation of 100.0K jobs and an Unemployment Rate of 7.3%. Forex traders can compare this to the Canadian Employment Report for July, which showed the creation of 94.0K jobs, and an Unemployment Rate of 7.5%. The Participation Rate for August is predicted at 65.2%. Forex traders can compare this to the Participation Rate for July, reported at 65.2%.
The Canadian Capacity Utilization Rate for the second quarter is predicted at 81.2%. Forex traders can compare this to the Canadian Capacity Utilization Rate for the first quarter, reported at 81.7%.
The forecast for the EUR/CAD remains bearish after this currency pair failed to keep its uptrend alive following a lower high. Price action is now likely to correct into its Ichimoku Kinko Hyo Cloud. It is in a narrow and sideways drift. The Kijun-sen is also ranging sideways, suggesting a lack of short-term upside momentum. With the Tenkan-sen advancing, traders should expect a rise in volatility until it descends. The CCI already moved out of extreme overbought territory with plenty of downside potential. Will bears regain control over the EUR/CAD and force it 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 1.4935 to 1.4985 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4950
- Take Profit Zone: 1.4595 – 1.4660
- Stop Loss Level: 1.5045
Should price action for the EUR/CAD breakout above 1.4985, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5045
- Take Profit Zone: 1.5115 – 1.5190
- Stop Loss Level: 1.4985
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