Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German GDP for the second quarter came in flat at 0.0% quarterly and decreased by 0.2% annualized. Economists predicted a flat reading of 0.0% and a drop of 0.2% annualized. Forex traders can compare this to the first quarter German GDP, which contracted by 0.1% quarterly and 0.2% annualized.
The Spanish PPI for July is predicted to plunge by 10.1% annualized. Forex traders can compare this to the Spanish PPI for June, which contracted by 8.1% annualized.
The German IFO Business Climate Index for August is predicted at 86.7, the German IFO Current Assessment Index at 90.0, and the German IFO Expectations Index at 83.8. Forex traders can compare this to the German IFO Business Climate Index for July reported at 87.3, the German IFO Current Assessment Index at 91.3, and the German IFO Expectations Index at 83.5.
Spanish Consumer Confidence for July is predicted at 85.7. Forex traders can compare this to Spanish Consumer Confidence for June, reported at 92.4.
The final US Michigan Consumer Sentiment for August is predicted at 71.2. Forex traders can compare this to US Michigan Consumer Confidence for July, reported at 71.6. Final Current Conditions for August are predicted at 77.4, and Final Expectations at 67.3. Forex traders can compare this to Current Conditions for July, reported at 76.6, and Expectations, reported at 68.3. Final US Michigan Inflation Expectations for August are predicted at 3.3%, and Final US Michigan 5-year Inflation Expectations at 2.9%. Forex traders can compare this to Final US Michigan Inflation Expectations for July, reported at 3.4%, and Final US Michigan 5-Year Inflation Expectations at 3.0%.
Today’s speech by US Federal Reserve Chairman Powell at the Jackson Hole Symposium could inject volatility and erratic price action for US Dollar currency pairs.
The forecast for the EUR/USD turned cautiously bullish after this currency pair corrected into its horizontal support area. Short-term volatility remains elevated, with the Kijun-sen and the Tenkan-sen moving lower. The Ichimoku Kinko Hyo Cloud shifted higher and could attract price action higher. Traders should also monitor the CCI in extreme oversold territory with a loss in downside momentum. A breakout above -100 could push this technical indicator higher, leading price action to the upside. Can bulls overpower bears and regain control over the EUR/USD to pressure this currency pair 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 1.0770 to 1.0820 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0790
- Take Profit Zone: 1.0955 – 1.1025
- Stop Loss Level: 1.0730
Should price action for the EUR/USD breakdown below 1.0770, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0730
- Take Profit Zone: 1.0635 – 1.0670
- Stop Loss Level: 1.0770
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