Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Unemployment Rate for the fourth quarter came in at 4.0%. Economists predicted an Unemployment Rate of 4.3%. Forex traders can compare this to the Unemployment Rate for the third quarter, reported at 3.9%. The Employment Change for the fourth quarter rose by 0.4%. Economists predicted an increase of 0.3%. Forex traders can compare this to the Employment Change for the third quarter, which decreased by 0.1% quarterly. The Participation Rate for the fourth quarter was 71.9%. Economists predicted a Participation Rate of 72.0%. Forex traders can compare this to the Participation Rate for the second third, reported at 72.0%. The Labor Cost Index for the fourth quarter increased 1.0% quarterly and 3.9% annualized. Economists predicted a rise of 0.8% and 3.8%. Forex traders can compare this to the Labor Cost Index for the third quarter, which expanded 0.8% quarterly and 4.1% annualized.
German Industrial Production for December dropped by 1.6% monthly and 3.1% annualized. Forex traders can compare this to German Industrial Production for November, which contracted by 0.2% monthly and 4.4% annualized.
French non-farm payrolls for the fourth quarter are predicted to decrease 0.1% quarterly. Forex traders can compare this to French non-farm payrolls for the third quarter, which increased 0.1% quarterly.
The French Trade Balance for December is predicted at -€6.00B. Forex traders can compare this to the French Trade Balance for November, reported at -€5.94B.
Spanish Industrial Production for December is predicted to decrease by 0.2% annualized. Forex traders can compare this to Spanish Industrial Production for November, which rose 0.8% annualized.
Italian Retail Sales for December are predicted to increase by 0.2% monthly. Forex traders can compare this to Italian Retail Sales for November, which rose by 0.4% monthly.
The forecast for the EUR/NZD is cautiously bullish after this currency pair stabilized from its sell-off at its horizontal support area. Adding to the upside momentum is the narrowing Ichimoku Kinko Hyo Cloud with an ascending Senkou Span A and a downward shifting Senkou Span B. A bullish crossover could spark a rally. Short-term volatility could rise after the Tenkan-sen and the Kijun-sen flatlined following a bullish crossover. Traders should also monitor the CCI in extreme oversold territory, where a higher low would add to bullishness. A breakout by this technical indicator above -100 could spark a reversal. Can bulls regain control over the EUR/NZD and push price action into its horizontal resistance area to eclipse its 2024 high? 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 1.7590 to 1.7650 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7625
- Take Profit Zone: 1.7935 – 1.8050
- Stop Loss Level: 1.7550
Should price action for the EUR/NZD breakdown below 1.7590, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @1.7550
- Take Profit Zone: 1.7380 – 1.7460
- Stop Loss Level: 1.7590
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
