Eurozone CPI for June will be released this morning, but expectations call for a tame reading which may further entice the European Central Bank to stimulate the economy further. Eurozone construction output is anticipated to show weakness as Italian new industrial orders and sales are on track to paint a disappointing picture. The EURCAD is trading at a strong support level, will today’s data result in a breakdown? This morning’s fundamental analysis will highlight the risks to the downside as well as the chances for an upside surprise.
Here are the key factors to keep in mind today for Euro trades:
- Italian Industrial New Orders and Industrial New Sales: Italian Industrial New Orders for May is predicted to decrease by 1.4% monthly and by 4.2% annualized. Forex traders can compare this to Italian Industrial New Orders for April which decreased by 2.4% monthly and by 0.2% annualized. Italian Industrial New Sales for May is predicted to decrease by 0.5% monthly and by 2.5% annualized. Forex traders can compare this to Italian Industrial New Orders for April which decreased by 1.0% monthly and by 0.7% annualized.
- Eurozone CPI and Eurozone Core CPI: The Eurozone CPI for June is predicted to increase by 0.1% monthly and by 1.2% annualized. Forex traders can compare this to the Eurozone CPI for May which increased by 0.1% monthly and by 1.2% annualized. The Eurozone Core CPI for June is predicted to increase by 0.3% monthly and by 1.1% annualized. Forex traders can compare this to the Eurozone Core CPI for May which increased by 0.3% monthly and by 1.1% annualized.
- Eurozone Construction Output: Eurozone Construction Output for May is predicted to decrease by 0.2% monthly and to increase by 2.6% annualized. Forex traders can compare this to Eurozone Construction Output for April which decreased by 0.8% monthly and which increased by 3.9% annualized.
Is the Canadian Dollar ripe for a sell-off on the back of profit taking? After a stellar performance so far in 2019, some analysts start to explore the possibility for a reversal. CPI data will be released later in today’s session which is expected to hover near the 2.0% mark on an annualized level. Will Canadian manufacturing sales rebound? Any disappointment today could trigger a short-covering rally in the EURCAD. Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!
Here are the key factors to keep in mind today for Canadian trades:
- Canadian CPI: The Canadian CPI for June is predicted to decrease by 0.3% monthly and to increase by 2.0% annualized. Forex traders can compare this to the Canadian CPI for May which increased by 0.4% monthly and by 2.4% annualized. The Canadian Core CPI for June is predicted to increase by 1.8% annualized. Forex traders can compare this to the Canadian Core CPI for May which increased by 1.8% annualized. The Core CPI-Median for June is predicted to increase by 2.1% annualized and the Core CPI-Trim is predicted to increase by 2.2% annualized. Forex traders can compare this to the Core CPI-Median for May which increased by 2.1% annualized and to the Core CPI-Trim which increased by 2.3% annualized.
- Canadian Manufacturing Sales: Canadian Manufacturing Sales for May are predicted to increase by 2.0% monthly. Forex traders can compare this to Canadian Manufacturing Sales for April which decreased by 0.6% monthly.
Should price action for the EURCAD remain inside the or breakdown below the 1.4600 to 1.4700 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4650
- Take Profit Zone: 1.4395 – 1.4480
- Stop Loss Level: 1.4730
Should price action for the EURCAD breakout above 1.4700 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4730
- Take Profit Zone: 1.4860 – 1.4930
- Stop Loss Level: 1.4650
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