Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Business PMI for January was reported at 52.1. Forex traders can compare this to the New Zealand Business PMI for December, reported at 53.8. New Zealand Electronic Retail Card Spending for January increased 3.0% monthly and 5.7% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for December, which rose 0.3% monthly and 4.2% annualized.
New Zealand Inflation Expectations for the first quarter increased 3.27% quarterly. Forex traders can compare this to New Zealand Inflation Expectations for the fourth quarter, which increased 2.96% quarterly.
The Final German CPI for January rose 0.4% monthly and 4.9% annualized. Economists predicted an increase of 0.4% and 4.9%. Forex traders can compare this to the German CPI for December, which expanded 0.5% monthly and 5.3% annualized. The Final EU Harmonized German CPI for January increased 0.9% monthly and 5.1% annualized. Economists predicted a rise of 0.9% and 5.1%. Forex traders can compare this to the EU Harmonized German CPI for December, which rose 0.3% monthly and 5.7% annualized.
The German Wholesale Price Index for January increased 2.3% monthly and 16.2% annualized. Forex traders can compare this to the German Wholesale Price Index for December, which increased 0.2% monthly and 16.1% annualized.
The forecast for the EUR/NZD remains bearish after this currency pair retreated from its multi-week high. Price action can now correct into its moderately advancing Ichimoku Kinko Hyo Cloud. Short-term volatility may increase with the Kijun-sen and the Tenkan-sen flat, as bulls and bears fight for control over the next directional move. Adding to bearish pressures is the CCI, which formed a lower high inside extreme overbought territory before collapsing below 100. It has more downside potential, favoring an extension of the sell-off. Can bears extend the correction in the EUR/NZD and force price action 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 1.7220 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7155
- Take Profit Zone: 1.6755 – 1.6840
- Stop Loss Level: 1.7255
Should price action for the EUR/NZD breakout above 1.7220, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @1.7255
- Take Profit Zone: 1.7355 – 1.7480
- Stop Loss Level: 1.7220
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