Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Reserve Bank of New Zealand raised interest rates by 50 basis points to 5.25%. Economists predicted a 25 basis point hike. Forex traders can compare this to the Reserve Bank of New Zealand's previous interest rate decision, where the RBNZ hiked rates by 50 basis points to 4.75%. It marks the eleventh consecutive tightening in monetary policy to combat sticky inflation as the economy slows, and consumers increase their debt. The RBNZ emerged as one of the most hawkish central banks intended to bring inflation under control after the RBA kept interest rates unchanged and other central banks slow their pace of tightening.
German Factory Orders for February surged by 4.8% monthly. Economists predicted an increase of 0.3%. Forex traders can compare this to German Factory Orders for January, which increased by 0.5% monthly.
French Industrial Production for February increased by 1.2% monthly. Economists predicted an increase of 0.5%. Forex traders can compare this to French Industrial Production for January, which decreased by 1.4% monthly.
Spanish Industrial Production for February is predicted to decrease by 0.1% annualized. Forex traders can compare this to Spanish Industrial Production for January, which contracted by 0.4% annualized.
The Spanish S&P Global Services PMI for March is predicted at 57.5. Forex traders can compare this to the Spanish S&P Global Services PMI for February, reported at 56.7. The Italian S&P Global Services PMI for March is predicted at 53.2. Forex traders can compare this to the Italian S&P Global Services PMI for February, reported at 51.6.
The Final French S&P Global Services PMI for March is predicted at 55.5, and the Final French S&P Global Composite PMI at 54.0. Forex traders can compare this to the French S&P Global Services PMI for March, reported at 53.1, and the French S&P Global Composite PMI at 51.7.
The Final German S&P Global Services PMI for March is predicted at 53.9, and the Final German S&P Global/BME Composite PMI at 52.6. Forex traders can compare this to the German S&P Global Services PMI for March, reported at 50.9, and the German S&P Global/BME Composite PMI at 50.7.
The Final Eurozone S&P Global Services PMI for March is predicted at 55.6, and the Final Eurozone S&P Global Composite PMI at 54.1. Forex traders can compare this to the Eurozone S&P Global Services PMI for March, reported at 52.7, and the Eurozone S&P Global Composite PMI at 52.0.
The forecast for the EUR/NZD remains cautiously bullish, driven by its gradually ascending Ichimoku Kinko Hyo Cloud. Volatility could increase with Kijun-sen flat and the Tenkan-sen contracting. Traders should monitor the CCI following its double breakdown. This technical indicator may challenge the -100 level from where a bounce higher could extend the advance in this currency pair. Will bulls overpower bears and pressure the EUR/NZD 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 1.7230 to 1.7300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 1.7250
- Take Profit Zone: 1.7455 – 1.7530
- Stop Loss Level: 1.7170
Should price action for the EUR/NZD breakdown below 1.7230, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @1.7170
- Take Profit Zone: 1.7030 – 1.7080
- Stop Loss Level: 1.7230
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
