Forex traders continue to adjust to the dovishness out of the ECB which may extend its quantitative easing program unless economic data improves. The Eurozone economy is cooling off fast and inflation remains absent, but the immediate attention will be on this weekend’s G-20 meeting where hopes for an end to the US-China trade war are on the rise. On the economic front, this morning’s Eurozone confidence data will be in focus and economists anticipate a further slowdown. How will this impact the EURNZD? Will the sell-off accelerate further to the downside? Today’s fundamental analysis will determine the likely price action moves in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- Preliminary Spanish CPI: The Preliminary Spanish CPI for June is predicted flat at 0.0% monthly and to increase by 0.8% annualized. Forex traders can compare this to the Spanish CPI for May which increased by 0.2% monthly and by 0.8% annualized.
- Italian Confidence Data: Italian Business Confidence for June is predicted at 101.0 and Italian Consumer Confidence is predicted at 111.3. Forex traders can compare this to Italian Business Confidence for May which was reported at 102.0 and to Italian Consumer Confidence which was reported at 111.8.
- Eurozone Confidence Data: Eurozone Economic Confidence for June is predicted at 104.7. Forex traders can compare this to Eurozone Economic Confidence for May which was reported at 105.1. Eurozone Industrial Confidence for June is predicted at -3.0. Forex traders can compare this to Eurozone Industrial Confidence for May which was reported at -2.9. Eurozone Services Confidence for June is predicted at 12.4. Forex traders can compare this to Eurozone Services Confidence for May which was reported at 12.2. Final Eurozone Consumer Confidence for June is predicted at -7.2. Forex traders can compare this to the previous Eurozone Consumer Confidence for June which was reported at -7.2. The Eurozone Business Climate Indicator for June is predicted at 0.28. Forex traders can compare this to Eurozone Business Climate Indicator for May which was reported at 0.30.
- Preliminary German CPI: The Preliminary German CPI for June is predicted to increase by 0.2% monthly and by 1.4% annualized. Forex traders can compare this to the German CPI for May which increased by 0.2% monthly and by 1.4% annualized.
The New Zealand Dollar has extended its rally after news circulated yesterday that a trade deal between the US and China is 90% complete and that there is a path to complete it. This raised hopes that the meeting between US President Trump and Chinese President Xi could end the trade war which has intensified over the course of its existence. Economic data out of New Zealand showed business confidence worsening while China reported a rise in industrial profits. How much further can the sell-off in the EURNZD last? PaxForex issues its own forex broker trading recommendations every day in order to prepare traders for where price action could be headed next and how to profit from it.
Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand ANZ Activity Outlook and ANZ Business Confidence: The New Zealand ANZ Activity Outlook for June was reported at 8.0 and ANZ Business Confidence was reported at -38.1. Forex traders can compare this to the New Zealand ANZ Activity Outlook for May which was reported at 8.5 and to ANZ Business Confidence which was reported at -32.0.
- Chinese Industrial Profits: Chinese Industrial Profits for May increased by 1.1% annualized. Forex traders can compare this to Chinese Industrial Profits for April which decreased by 3.7% annualized.
Should price action for the EURNZD remain inside the or breakdown below the 1.6915 to 1.7035 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6990
- Take Profit Zone: 1.6675 – 1.6775
- Stop Loss Level: 1.7090
Should price action for the EURNZD breakout above 1.7035 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7100
- Take Profit Zone: 1.7220 – 1.7310
- Stop Loss Level: 1.7035
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