Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German IFO Business Climate Index for January is predicted at 91.8. Forex traders can compare this to the German IFO Business Climate Index for December, reported at 92.1. The German IFO Current Assessment Index for January is predicted at 90.6. Forex traders can compare this to the German IFO Current Assessment Index for December, reported at 91.3. The German IFO Expectations Index for January is predicted at 93.2. Forex traders can compare this to the German IFO Expectations Index for December, reported at 92.8.
The Mexican Economic Activity IGAE for November is predicted to increase by 0.3% monthly and to decrease by 4.50% annualized. Forex traders can compare this to the Mexican Economic Activity IGAE for October, which increased by 1.6% monthly, and which decreased by 5.30% annualized.
The forecast for the EUR/MXN turned bearish after this currency pair moved into its narrowing sideways Ichimoku Kinko Hyo Cloud. While the Kijun-sen also entered a sideways trend, providing additional resistance, the Tenkan-sen continues to decelerate. The Eurozone faces more Covid-19 hardship and a spike in debt, placing fundamental bearish pressures on price action. The CCI continues to advance but is vulnerable to a reversal into extreme oversold conditions. Will bears regain their footing and force a new push lower in the EUR/MXN? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/MXN remain inside the or breakdown below the 24.0850 to 24.3640 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 24.2200
- Take Profit Zone: 23.0580 – 23.3180
- Stop Loss Level: 24.5060
Should price action for the EUR/MXN breakout above 24.3640 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 25.5060
- Take Profit Zone: 25.0000 – 25.0770
- Stop Loss Level: 22.3640
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