Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for July came in at -NZ$963M monthly and at -NZ$9,290M annualized. Forex traders can compare this to the New Zealand Trade Balance for June, reported at NZ$585M monthly and -NZ$9,500M annualized. Exports for July came in at NZ$6.15B, and Imports at NZ$7.11B. Forex traders can compare this to Exports for June, reported at NZ$6.04B, and Imports, reported at NZ$5.45B.
The Chinese 1-Year Loan Prime Rate for August was reported at 3.35%, and the Chinese 5-Year Loan Prime Rate at 3.85%. Economists predicted a figure of 3.35% and 3.85%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for July, reported at 3.35%, and the Chinese 5-Year Loan Prime Rate at 3.85%.
The German PPI for July increased by 0.2% monthly and decreased by 0.8% annualized. Economists predicted a rise of 0.2% and a drop of 0.8%. Forex traders can compare this to the German PPI for June, which expanded by 0.2% monthly and contracted by 1.6% annualized.
The Eurozone Current Account (s.a) for June is predicted at €37.0B. Forex traders can compare this to the Eurozone Current Account (s.a.) for May, reported at €36.7B.
The Eurozone CPI for July is predicted flat at 0.0% monthly and to increase by 2.6% annualized. Forex traders can compare this to the Eurozone CPI for June, which expanded by 0.2% monthly and 2.5% annualized. The Eurozone Core CPI for July is predicted to decrease by 0.2% monthly and accelerate by 2.9% annualized. Forex traders can compare this to the Eurozone Core CPI for June, which rose by 0.4% monthly and 2.9% annualized. The Eurozone Harmonized Core CPI for July is predicted to contract by 0.1% monthly and expand by 2.8% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for June, which accelerated by 0.4% monthly and 2.8% annualized.
The forecast for the EUR/NZD remains bearish after this currency pair broke down below its horizontal support area, turning it into resistance. The descending Tenkan-sen completed a bearish crossover below the ascending Kijun-sen, suggesting more short-term volatility ahead. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud have flatlined, and the next move could be to the downside amid a lack of bullish catalysts. Traders should also monitor the CCI after recording a series of lower highs and moving into extreme oversold territory. This technical indicator may reverse into another lower high before resuming its downward path. Can bears maintain control over the EUR/NZD and force price action 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/NZD remain inside the or breakdown below the 1.8065 to 1.8115 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8085
- Take Profit Zone: 1.7675 – 1.7770
- Stop Loss Level: 1.8220
Should price action for the EUR/NZD break out above 1.8115, PaxForex recommends the following trade setup :
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @1.8220
- Take Profit Zone: 1.8355 – 1.8390
- Stop Loss Level: 1.8115
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