Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Retail Sales for the fourth quarter decreased by 0.6% quarterly and 4.0% annualized. Forex traders can compare this to New Zealand Retail Sales for the third quarter, which rose by 0.6% quarterly and 4.9% annualized. Core Retail sales for the fourth quarter dropped by 1.3% quarterly. Economists predicted an increase of 0.3%. Forex traders can compare this to Core Retail Sales for the third quarter, which rose by 0.5% quarterly.
Italian Consumer Confidence for February is predicted at 102.7. Forex traders can compare this to Italian Consumer Confidence for January, reported at 100.9.
Eurozone M3 Money Supply for January is predicted to increase by 3.9% annualized. Forex traders can compare this to Eurozone M3 Money Supply for December, which rose by 4.1% annualized. Eurozone Private Sector Loans for January are predicted to increase by 3.9% annualized. Forex traders can compare this to Eurozone Private Sector Loans for December, which rose by 3.8% annualized.
Eurozone Economic Sentiment for February is predicted at 101.0. Forex traders can compare this to Eurozone Economic Sentiment for January, reported at 99.9. Eurozone Industrial Sentiment for February is predicted at 2.0, and Eurozone Services Sentiment at 12.4. Forex traders can compare this to Eurozone Industrial Sentiment for January, reported at 1.3, and Eurozone Services Sentiment at 10.7. Final Eurozone Consumer Confidence for February is predicted at -19.0. Forex traders can compare this to the previous Eurozone Consumer Confidence for February, reported at -19.0.
Euro traders will also get three French BTF auctions, the 3-month, the 6-month, and the 12-month, which could show short-term borrowing costs on the rise. Philip Lane, a member of the Executive Board of the European Central Bank, will give remarks at noon (EST). They may hint at possible changes in ECB monetary policy as the Eurozone and the ECB navigate a slowing economy and high inflation.
The forecast for the EUR/NZD turned bearish after this currency pair reached a horizontal resistance area, causing bullish momentum to recede. Volatility could rise with the Ichimoku Kinko Hyo Cloud showing signs of exhaustion and a potential sideways drift while the Tenkan-sen slows and the Kijun-sen drifts higher. Traders should also monitor the CCI after it recorded a series of lower highs in extreme overbought territory, leading to the formation of a negative divergence. A renewed breakdown below 100 could trigger a sustained sell-off in price action. Can bears overcome bullish attacks and regain control over the EUR/NZD to pressure it 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 1.7100 to 1.7185 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7155
- Take Profit Zone: 1.6745 – 1.6830
- Stop Loss Level: 1.7225
Should price action for the EUR/NZD breakout above 1.7185, PaxForex recommends the following trade set-up :
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @1.7225
- Take Profit Zone: 1.7315 – 1.7375
- Stop Loss Level: 1.7185
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