Today’s ZEW data out of Germany and the Eurozone is expected to impact price action in the Euro. Economists anticipate the German Expectations Index to move into positive territory and the same holds for the Eurozone Economic Sentiment Index. The EURUSD retraced back down to a key support level, how will this currency pair react following the release of economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Following Friday’s blockbuster NFP report out of the US, today’s final revision to Non-Farm Productivity and Unit Labor Costs will remain in focus. The NFIB Small Business Optimism Index is expected to show a slight improvement. The US Dollar failed to capitalize on the strong labor report, how will the EURUSD be impacted by the release of today’s data? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- Italian Industrial Production: Italian Industrial Production for October is predicted to decrease by 0.2% monthly and by 2.1% annualized. Forex traders can compare this to Italian Industrial Production for September which decreased by 0.4% monthly and by 2.1% annualized.
- German ZEW Survey and Eurozone ZEW Survey: The German ZEW Survey Current Situation Index for December is predicted at -22.3 and the German ZEW Survey Economic Expectations Index at 1.1. Forex traders can compare this to the German ZEW Survey Current Situation Index for November which was reported at -24.7 and to the German ZEW Survey Economic Expectations Index which was reported at -2.1. The Eurozone ZEW Survey Economic Sentiment Index for December is predicted at 2.2. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for November which was reported at -1.0.
Here are the key factors to keep in mind today for US Dollar trades:
- US NFIB Small Business Optimism Index: The US NFIB Small Business Optimism Index for November is predicted at 103.0. Forex traders can compare this to the NFIB Small Business Optimism Index for October which was reported at 102.4.
- US Non-Farm Productivity and Unit Labor Costs: Final US Non-Farm Productivity for the third-quarter is predicted to decrease by 0.1% quarterly and Unit Labor Costs are predicted to increase by 3.4% quarterly. Forex traders can compare this to previous US Non-Farm Productivity for the third-quarter which decreased by 0.3% quarterly and to Unit Labor Costs which increased by 3.6% quarterly.
Should price action for the EURUSD remain inside the or breakout above the 1.1040 to 1.1080 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1065
- Take Profit Zone: 1.1180 – 1.1250
- Stop Loss Level: 1.1000
Should price action for the EURUSD breakdown below 1.1040 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1000
- Take Profit Zone: 1.0880 – 1.0925
- Stop Loss Level: 1.1040
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