Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for July was reported at -NZ$402M monthly and at -NZ$1,100M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for June, reported at NZ$245M monthly and -NZ$280M 12-month year-to-date. Exports for July were reported at NZ$5.75B and Imports at NZ$6.18B. Forex traders can compare this to Exports for June, reported at NZ$5.96B, and Imports, reported at NZ$5.71B.
The German IFO Business Climate Index for August is predicted at 100.4. Forex traders can compare this to the German IFO Business Climate Index for July, reported at 100.8. The German IFO Current Assessment Index for August is predicted at 100.8. Forex traders can compare this to the German IFO Current Assessment Index for July, reported at 100.4. The German IFO Expectations Index for August is predicted at 100.0. Forex traders can compare this to the German IFO Expectations Index for July, reported at 101.2.
The forecast for the EUR/NZD remains bearish after this currency pair corrected into its descending Ichimoku Kinko Hyo Cloud. Price action may temporarily pause, and volatility can increase, but the longer-term downtrend remains intact. The Tenkan-sen turned higher with the Kijun-sen flat, confirming short-term choppiness will likely follow. Adding to the bearish technical outlook is the CCI, which corrected from extreme overbought territory and now faces more downside. Will bears pressure the EUR/NZD into an extended sell-off 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 1.6865 to 1.6940 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6905
- Take Profit Zone: 1.6640 – 1.6700
- Stop Loss Level: 1.6985
Should price action for the EUR/NZD breakout above 1.6940, PaxForex recommends the following trade set-up :
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6985
- Take Profit Zone: 1.7120 – 1.7200
- Stop Loss Level: 1.6940
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
