Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand CPI for the third quarter rose 2.2% quarterly and 7.2% annualized. Economists predicted an increase of 1.6% and 6.6%. Forex traders can compare this to the New Zealand CPI for the second quarter, which expanded 1.7% quarterly and 7.3% annualized.
New Zealand RBNZ Offshore Holdings for September came in at 53.2%. Forex traders can compare this to New Zealand RBNZ Offshore Holdings for August, reported at 53.6%.
The Italian Trade Balance for August is predicted at -€0.500B. Forex traders can compare this to the Italian Trade Balance for July, reported at -€0.361B.
The German ZEW Survey Current Situation Index for October is predicted at -68.0, and the German ZEW Survey Economic Sentiment Index at -65.7. Forex traders can compare this to the German ZEW Survey Current Situation Index for September, reported at -60.5, and the German ZEW Survey Economic Sentiment Index at -61.9. The Eurozone ZEW Survey Economic Sentiment Index for October is predicted at -61.2. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for September, reported at -60.7.
Risk-on sentiment prevailed yesterday to kick off a fresh trading week, and futures point to a continuation of upside pressure today. Traders should prepare for the potential of another bear market rally, with lower highs than before. The economic calendar was light but showed worse-than-expected manufacturing data out of the New York Fed region while borrowing costs continue to increase. Market participants should tread cautiously as the holiday shopping season may disappoint, leading to additional fundamental downside pressure across financial markets. The EUR/NZD remains vulnerable to a sell-off as traders realize profits before gauging more economic data.
The forecast for the EUR/NZD is turning bearish in the short term after a horizontal resistance area rejected price action. Adding to the bearish outlook is the Ichimoku Kinko Hyo Cloud as the Senkou Span A and the Senkou Span B flatlined. The Kijun-sen and the Tenkan-sen also entered a sideways trend, confirming the absence of short-term upside pressure. Traders should monitor the CCI after it has completed a breakdown from extreme overbought territory, followed by a reversal and lower high, before resuming its downtrend. A move below the zero level could trigger more selling in this currency pair. Can bears overpower bulls and force the EUR/NZD 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 1.7235 to 1.7420 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7315
- Take Profit Zone: 1.6695 – 1.6855
- Stop Loss Level: 1.7510
Should price action for the EUR/NZD breakout above 1.7420, PaxForex recommends the following trade set-up :
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @1.7510
- Take Profit Zone: 1.7660 – 1.7715
- Stop Loss Level: 1.7420
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
