Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for November expanded 1.6% monthly and 2.1% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for October, which decreased by 0.6% monthly and 2.0% annualized.
New Zealand Permanent/Long-Term Migration for October came in at 7,810. Forex traders can compare this to Permanent/Long-Term Migration for September, reported at 10,010. External Migration & Visitors for October surged 39.8% monthly. Forex traders can compare this to External Migration & Visitors for September, which sky-rocketed 48.7% monthly. Visitor Arrivals for October decreased by 8.0% monthly. Forex traders can compare this to Visitor Arrivals for September, which rose 2.3% monthly.
The German WPI for November decreased by 0.2% monthly and 3.6% annualized. Forex traders can compare this to the German WPI for October, which contracted by 0.7% monthly and 4.2% annualized.
The German ZEW Survey Current Situation Index for December is predicted at -76.0, and the German ZEW Survey Economic Sentiment Index at 8.8. Forex traders can compare this to the German ZEW Survey Current Situation Index for November, reported at -79.8, and the German ZEW Survey Economic Sentiment Index, reported at 9.8. The Eurozone ZEW Survey Economic Sentiment Index for December is predicted at 11.2. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for November, reported at 13.8.
Traders may await US CPI data before engaging in sizable Forex transactions. Forex traders could ultimately wait for Super Thursday when five European central banks announce their last monetary policy decisions for 2023. Expectations for a divergence in 2024 monetary policy between the US Fed, which will make its final announcement on Wednesday, and the ECB continue to grow, which could impact capital flows in the Euro.
The forecast for the EUR/NZD turned cautiously bullish after this currency pair corrected into its horizontal support area with fading selling pressure. Following a bearish crossover, the Kijun-sen flatlined, with the Tenkan-sen moving lower, pointing toward a potential volatility increase. The Ichimoku Kinko Hyo Cloud shows a bullish bias, but the Senkou Span B is flat, with the Senkou Span A moving lower and narrowing the cloud. Traders should also monitor the CCI following its breakout from extreme oversold territory. This technical indicator has plenty of downside potential, and a move above zero could accelerate the expected price action reversal. Can bulls regain control over the EUR/NZD and push this currency pair into its horizontal resistance 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 breakout above the 1.7450 to 1.7540 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7495
- Take Profit Zone: 1.7890 – 1.7980
- Stop Loss Level: 1.7390
Should price action for the EUR/NZD breakdown below 1.7450, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @1.7390
- Take Profit Zone: 1.7165 – 1.7235
- Stop Loss Level: 1.7450
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