Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for May came in at NZ$204M monthly and at -NZ$10,050M annualized. Forex traders can compare this to the New Zealand Trade Balance for April, reported at -NZ$3M monthly and -NZ$10,220M annualized. Exports for May came in at NZ$7.16B and Imports at NZ$6.95B. Forex traders can compare this to Exports for April, reported at NZ$6.31B, and Imports, reported at NZ$6.32B.
New Zealand Credit Card Spending for May was flat at 0.0% annualized. Forex traders can compare this New Zealand Credit Card Spending for April, which decreased by 0.8% annualized.
The German IFO Business Climate Index for June is predicted at 89.4, the German IFO Current Assessment Index at 88.4, and the German IFO Expectations Index at 91.0. Forex traders can compare this to the German IFO Business Climate Index for May, reported at 89.3, the German IFO Current Assessment Index at 88.3, and the German IFO Expectations Index at 90.4.
The forecast for the EUR/NZD turned cautiously bullish after this currency pair corrected into its horizontal support area. The flat Tenkan-sen and Kijun-sen confirm the lack of downside momentum, but short-term volatility may increase with the Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud moving lower. Traders should also monitor the CCI following its breakout from extreme oversold territory, preceded by a positive divergence. This technical indicator has plenty of upside potential, and a move above zero could trigger the next advance. Can bulls regain control over the EUR/NZD and push price action 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 1.7460 to 1.7525 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7490
- Take Profit Zone: 1.7815 – 1.7890
- Stop Loss Level: 1.7415
Should price action for the EUR/NZD break down below 1.7460, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @1.7415
- Take Profit Zone: 1.7340 – 1.7390
- Stop Loss Level: 1.7460
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