Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Construction PMI for August is predicted at 56.9. Forex traders can compare this to the UK Construction PMI for July, reported at 58.7.
Eurozone Sentix Investor Confidence for September is predicted at 19.7. Forex traders can compare this to Eurozone Sentix Investor Confidence for August, reported at 22.2.
Trading volumes today might be lower with the Labor Day weekend in the US, resulting in reduced trading, which can cause more volatility on thinner volume. September also features more overall volatility, and traders should monitor their stop loss levels more carefully. The first trading week of the month will start slow, but activity is set to accelerate. Traders should remain patient and not rush into executing orders until volumes pick up.
The forecast for the EUR/GBP remains bearish after it failed to extend its advance. Price action was rejected by its descending Ichimoku Kinko Hyo Cloud, which maintains the longer-term downtrend. The Kijun-sen turned sideways, and the Tenkan-sen is expected to follow suit after the CCI moved out of extreme overbought territory. It has more downside potential, and the selling pressure may increase over the following trading sessions. Can bears strengthen their control over the EUR/GBP 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/GBP remain inside the or breakdown below the 0.8555 to 0.8585 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8575
- Take Profit Zone: 0.8450 – 0.8475
- Stop Loss Level: 0.8620
Should price action for the EUR/GBP breakout above 0.8585, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8620
- Take Profit Zone: 0.8670 – 0.8700
- Stop Loss Level: 0.8585
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