Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Inflation Expectations for the fourth quarter increased 2.76% quarterly. Forex traders can compare this to New Zealand Inflation Expectations for the third quarter, which rose 2.83% quarterly.
The Final German CPI for October was flat at 0.0% monthly and rose 3.8% annualized. Economists predicted a flat reading of 0.0% and a rise of 3.8%. Forex traders can compare this to the German CPI for September, which expanded 0.3% monthly and 4.5% annualized. The Final EU Harmonized German CPI for October decreased by 0.2% monthly and increased by 4.5% annualized. Economists predicted a contraction of 0.2% and an expansion of 4.5%. Forex traders can compare this to the EU Harmonized German CPI for September, which rose 0.2% monthly and 4.3% annualized.
The French Trade Balance for September came in at -€8.9B, and the French Current Account Balance at -€2.5B. Forex traders can compare this to the French Trade Balance for August, reported at -€8.3B, and the French Current Account Balance at -€1.1B. French Exports for September came in at €49.1B, and French Imports at €58.0B. Forex traders can compare this to French Exports for August, reported at €50.5B, and French Imports at €58.9B.
Italian Retail Sales for September are predicted to decrease by 0.2% monthly. Forex traders can compare this to Italian Retail Sales for August, which contracted by 0.4% monthly.
Eurozone Retail Sales for September are predicted to decrease by 0.2% monthly and 3.1% annualized. Forex traders can compare this to Eurozone Retail Sales for August, which dropped by 1.2% monthly and 2.1% annualized.
Euro traders will also pay attention to speeches by German Bundesbank President Nagel, a voting member and one of the most influential voices in the ECB Governing Council, and Andrea Enria, the Chair of the Supervisory Board of the European Central Bank.
The forecast for the EUR/NZD is cautiously bullish after this currency pair endured a short-term correction. Price action trades above its flat Kijun-sen but below its flat Tenkan-sen. The Ichimuko Kinko Hyo Cloud began to narrow with the Senkou Span B flat and the Senkou Span A ascending, which could lead to a bullish crossover and add upside momentum. Traders should also monitor the CCI after recording a higher low in extreme oversold territory followed by a breakout. This technical indicator has plenty of upside potential, and a move above zero could accelerate this currency pair higher. Can bulls regain control over the EUR/NZD and drive price action into its horizontal resistance area and a multi-week high? 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 1.7940 to 1.8050 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7985
- Take Profit Zone: 1.8375 – 1.8460
- Stop Loss Level: 1.7885
Should price action for the EUR/NZD breakdown below 1.7940, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @1.7885
- Take Profit Zone: 1.7725 – 1.7780
- Stop Loss Level: 1.7940
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