Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German PPI for July increased by 0.2% monthly and decreased by 1.7% annualized. Economists predicted an increase of 0.1% and a decrease of 1.8%. Forex traders can compare this to the German PPI for June, which was reported flat at 0.0% monthly, and which decreased by 1.8% annualized.
US Initial Jobless Claims for the week of August 15th are predicted at 925K, and US Continuing Claims for the week of August 8th are predicted at 15,000K. Forex traders can compare this to US Initial Jobless Claims for the week of August 8th, which were reported at 963K, and to US Continuing Claims for the week of August 1st, which were reported at 15,486K. The Philadelphia Fed Manufacturing Index for August is predicted at 21.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for July, reported at 24.1. The US Leading Index for July is predicted to increase by 1.1% monthly. Forex traders can compare this to the US Leading Index for June, which increased by 2.0% monthly.
The forecast for the EUR/USD turned bullish again after a brief sell-off took this currency pair out of overbought territory. The FOMC minutes from the July meeting showed concerns over the economic impact of Covid-19 and cast doubt over any positive impact of its bond-buying program. Price action is above its Kijun-sen, resting at its Tenkan-sen, with an ascending Ichimoku Kinko Hyo Cloud. Will bulls be able to push the EUR/USD 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/USD remain inside the or breakout above the 1.1800 to 1.1900 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1845
- Take Profit Zone: 1.2205 – 1.2270
- Stop Loss Level: 1.1710
Should price action for the EUR/USD breakdown below 1.1800 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1710
- Take Profit Zone: 1.1450 – 1.1510
- Stop Loss Level: 1.1800
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