German Industrial Production for January increased by 3.0% monthly and decreased by 1.3% annualized. Economists predicted an increase of 1.7% monthly and a decrease of 3.8% annualized. Forex traders can compare this to German Industrial Production for December, which decreased by 2.2% monthly and by 5.3% annualized. The EUR/MXN spiked, but the EUR/MXN forecast comes with a bearish bias as the coronavirus is spreading across Europe. Will bears pressure price action into a sell-off or can bulls step in?
The German Trade Balance for January was reported at €13.9B. Economists predicted a figure of €15.3B. Forex traders can compare this to German Trade Balance for December, which was reported at €15.2B. Exports for January were reported flat at 0.0% monthly and Imports increased by 0.5% monthly. Economists predicted an increase of 0.8% monthly and 0.6% monthly. Forex traders can compare this to Exports for December, which increased by 0.2% monthly, and to Imports which decreased by 0.3% monthly. The German Current Account Balance for January was reported at a €16.6B. Economists predicted a figure of €20.1B. Forex traders can compare this to the German Current Account Balance for December, which was reported at €24.8B. Eurozone Sentix Investor Confidence for March is predicted at -12.2. Forex traders can compare this to Eurozone Sentix Investor Confidence for February, which was reported at 5.2.
The Mexican CPI for February is predicted to increase by 0.28% monthly and by 3.56% annualized. Forex traders can compare this to the Mexican CPI for January, which increased by 0.48% monthly and by 3.24% annualized. The Mexican Core CPI for February is predicted to increase by 0.37% monthly. Forex traders can compare this to the Mexican Core CPI for January, which increased by 0.33% monthly. The Mexican Bi-Weekly CPI for the week ending February 29th is predicted to increase by 0.20% monthly and by 3.59% annualized. Forex traders can compare this to the Mexican Bi-Weekly CPI for the week ending February 15th, which increased by 0.12% monthly and by 3.52% annualized. The Mexican Bi-Weekly Core CPI for the week ending February 29th is predicted to increase by 0.14% monthly. Forex traders can compare this to the Mexican Bi-Weekly Core CPI for the week ending February 15th, which increased by 0.22% monthly.
Should price action for the EUR/MXN remain inside the or breakdown below the 24.3300 to 24.5000 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 24.3575
- Take Profit Zone: 20.9200 – 21.3375
- Stop Loss Level: 24.7500
Should price action for the EUR/MXN breakout above 24.5000 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 24.7500
- Take Profit Zone: 25.5000 – 25.7500
- Stop Loss Level: 24.5000
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