Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for June came in at NZ$699M monthly and at -NZ$9,400M annualized. Forex traders can compare this to the New Zealand Trade Balance for May, reported at NZ$54M monthly and -NZ$10,210M annualized. Exports for June came in at NZ$6.17B and Imports at NZ$5.47B. Forex traders can compare this to Exports for May, reported at NZ$7.00B, and Imports, reported at NZ$6.94B.
The Chinese 1-Year Loan Prime Rate for May was reported at 3.35%, and the Chinese 5-Year Loan Prime Rate at 3.85%. Economists predicted a figure of 3.45% and 3.95%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for April, which was reported at 3.45%, and the Chinese 5-Year Loan Prime Rate, which was reported at 3.95%.
German Retail Sales for May are predicted to be flat at 0.0% monthly. Forex traders can compare this to German Retail Sales for April, which dropped 1.2% monthly.
The forecast for the EUR/NZD has turned bearish after this currency pair rallied into its horizontal resistance area. Short-term volatility could increase with the Kijun-sen and the Tenkan-sen moving higher following a bullish crossover. The Senkou Span A moves higher and narrows the Ichimoku Kinko Hyo Cloud but remains below the flat Senkou Span B. Traders should also monitor the CCI in extreme overbought territory after a negative divergence has formed. A breakdown below 100 could trigger a sell-off, and this technical indicator has plenty of downside potential to lead to a correction. Can bears regain control over 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 1.8115 to 1.8200 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8160
- Take Profit Zone: 1.7830 – 1.7890
- Stop Loss Level: 1.8255
Should price action for the EUR/NZD break out above 1.8200, PaxForex recommends the following trade setup :
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @1.8255
- Take Profit Zone: 1.8315 – 1.8395
- Stop Loss Level: 1.8200
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
