Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German CPI for August rose 0.3% monthly and 6.1% annualized. Economists predicted an increase of 0.3% and 6.1%. Forex traders can compare this to the German CPI for July, which expanded 0.3% monthly and 6.2% annualized. The Final EU Harmonized German CPI for August increased by 0.4% monthly and 6.4% annualized. Economists predicted a rise of 0.4% and 6.4%. Forex traders can compare this to the EU Harmonized German CPI for July, which rose 0.5% monthly and 6.5% annualized.
French Industrial Production for July increased by 0.8% monthly. Economists predicted a rise of 0.1%. Forex traders can compare this to French Industrial Production for June, which contacted 0.9% monthly.
Spanish Industrial Production for July dropped by 1.8% annualized. Economists predicted a decrease of 2.0%. Forex traders can compare this to Spanish Industrial Production for June, which plunged 3.2% annualized.
The Canadian Employment Report for August is predicted to show the addition of 15.0K jobs and an Unemployment Rate of 5.6%. Forex traders can compare this to the Canadian Employment Report for July, which showed the loss of 6.4K jobs and an Unemployment Rate of 5.5%.
The Canadian Capacity Utilization Rate for the second quarter is predicted at 82.5%. Forex traders can compare this to the Canadian Capacity Utilization Rate for the first quarter, reported at 81.9%.
Traders should expect a quiet day to the close of the first trading week of September, especially after the close of the European trading session. A speech by Michael Barr, the Fed Vice Chair for Supervision of the Board of Governors, could dictate the direction for US Dollar pairs during the US session.
The forecast for the EUR/CAD turned cautiously bullish after this currency pair stabilized at its narrowing Ichimoku Kinko Hyo Cloud, which shows a bullish bias. The Senkou Span B moves gradually higher, while the Senkou Span A shifts lower. Adding a bullish catalyst is the ascending Kijun-sen, which is on the verge of a bullish crossover above the flat Tenkan-sen, but traders should expect volatility to increase as bulls and bears fight for directional control over this currency pair. Traders should also monitor the CCI following its breakout from extreme oversold territory. This technical indicator has plenty of upside potential, and a push above zero could accelerate the pending resumption of its upward move. Can bulls regain control over the EUR/CAD and push price action into its horizontal resistance area and a fresh 2023 high? 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 1.4610 to 1.4665 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4635
- Take Profit Zone: 1.4825 – 1.4880
- Stop Loss Level: 1.4580
Should price action for the EUR/CAD breakdown below 1.4610, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4580
- Take Profit Zone: 1.4485 – 1.4530
- Stop Loss Level: 1.4610
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