Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Reserve Bank of New Zealand raised interest rates 25 basis points to 0.50%. Economists predicted a 25 basis point interest rate increase to 0.50%. Forex traders can compare this to the Reserve Bank of New Zealand's previous interest rate announcement, where rates remained unchanged at 0.25%.
German Factory Orders for August decreased 7.7% monthly. Economists predicted a decrease of 2.1%. Forex traders can compare this to German Factory Orders for July, which increased 4.9% monthly.
Spanish Industrial Production for August is predicted to increase 3.5% annualized. Forex traders can compare this to Spanish Industrial Production for July, which increased 3.4% annualized. Eurozone Retail Sales for August are predicted to increase 0.8% monthly and 0.4% annualized. Forex traders can compare this to Eurozone Retail Sales for July, which decreased 2.3% monthly and increased 3.1% annualized.
The forecast for the EUR/NZD remains bullish as this currency pair is in the early stage of recovery. It created a series of higher highs, and the Tenkan-sen started to drift higher, but the Kijun-sen, currently, remains flat. The Ichimoku Kinko Hyo Cloud adds to bullishness after the Senkou Span A adopted a gradual uptrend. After the CCI retreated from extreme overbought territory, it stabilized, and the next move is likely to be higher. Can bulls take advantage of rising upside pressure and force the EUR/NZD 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 1.6685 to 1.6740 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6720
- Take Profit Zone: 1.7095 – 1.7160
- Stop Loss Level: 1.6600
Should price action for the EUR/NZD breakdown below 1.6685, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6600
- Take Profit Zone: 1.6485 – 1.6530
- Stop Loss Level: 1.6685
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