Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Reserve Bank of New Zealand kept interest rates unchanged at 0.25%. Economists predicted no change in interest rates. Forex traders can compare this to Reserve Bank of New Zealand's previous interest rate announcement were rates were left unchanged at 0.25%.
The French Business Survey for June was reported at 77. Economists predicted a level of 80. Forex traders can compare this to the French Business Survey for May, reported at 71. The German IFO Business Climate Index for June was reported at 86.2. Economists predicted a figure of 85.0. Forex traders can compare this to the German IFO Business Climate Index for May, reported at 79.7. The German IFO Current Assessment Index for June was reported at 81.3. Economists predicted a figure of 84.0. Forex traders can compare this to the German IFO Current Assessment Index for May, reported at 78.9. The German IFO Expectations Index for June was reported at 91.4. Economists predicted a figure of 87.0. Forex traders can compare this to the German IFO Expectations Index for May, reported at 80.5.
The EUR/NZD forecast remains bearish following this morning’s French Business Survey and German IFO data. Current conditions disappointed, new Covid-19 cases are on the rise, and the economy is likely to face extended downside pressures. Price action is trapped between the Tenkan-sen and Kijun-sen, with the Ichimoku Kinko Hyo Cloud pressing lower. Will it allow bears to force a retreat in this currency pair 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 1.7490 to 1.7600 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7545
- Take Profit Zone: 1.6800 – 1.6920
- Stop Loss Level: 1.7690
Should price action for the EUR/NZD breakout above 1.7600 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7690
- Take Profit Zone: 1.7890 – 1.8000
- Stop Loss Level: 1.7600
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