Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary French Markit Manufacturing PMI for August is predicted at 49.0, the Preliminary French Markit Services PMI at 53.0, and the Preliminary French Markit Composite PMI at 50.8. Forex traders can compare this to the French Markit Manufacturing PMI for July, reported at 49.5, the French Markit Services PMI at 53.2, and the French Markit Composite PMI at 51.7.
The Preliminary German Markit Manufacturing PMI for August is predicted at 48.2, the Preliminary German Markit Services PMI at 49.0, and the Preliminary German Markit Composite PMI at 47.4. Forex traders can compare this to the German Markit Manufacturing PMI for July, reported at 49.3, the German Markit Services PMI at 49.7, and the German Markit Composite PMI at 48.1.
The Preliminary Eurozone Markit Manufacturing PMI for August is predicted at 49.0, the Preliminary Eurozone Markit Services PMI at 50.5, and the Preliminary Eurozone Markit Composite PMI at 49.0. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for July, reported at 49.8, the Eurozone Markit Services PMI at 51.2, and the Eurozone Markit Composite PMI at 49.9.
Advanced Eurozone Consumer Confidence for August is predicted at -28.0. Forex traders can compare this to the previous Eurozone Consumer Confidence for July, reported at -27.0.
The Preliminary US Markit Manufacturing PMI for August is predicted at 52.0, the Preliminary US Markit Services PMI at 49.2, and the Preliminary US Markit Composite PMI at 49.0. Forex traders can compare this to the US Markit Manufacturing PMI for July, reported at 52.2, the US Markit Services PMI at 47.3, and the US Markit Composite PMI at 47.7.
US New Home Sales for July are predicted at 575K new homes. Forex traders can compare this to US New Home Sales for June, reported at 590K new homes. The US Richmond Fed Manufacturing Index for August is predicted at -6. Forex traders can compare this to the US Richmond Fed Manufacturing Index for July, reported at 0.
The forecast for the EUR/USD remains cautiously optimistic after this currency pair plunged to two-decade lows below parity. With the Tenkan-sen and the Kijun-sen descending, confirming short-term volatility and bearishness, the Ichimoku Kinko Hyo remains flat. It poses the next resistance level and suggests price action could rally into the cloud to test it. Traders should monitor the CCI after it dropped into extreme oversold territory but formed a higher low and a positive divergence. A breakout above -100 could trigger a relive rally. Can bulls regain their strength and force 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 0.9870 to 1.0000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9920
- Take Profit Zone: 1.0270 – 1.0370
- Stop Loss Level: 0.9820
Should price action for the EUR/USD breakdown below 0.9870, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9820
- Take Profit Zone: 0.9625 – 0.9720
- Stop Loss Level: 0.9870
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