Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German GfK Consumer Confidence Survey for February came in at -29.7. Economists predicted a figure of -24.5. Forex traders can compare this to the German GfK Consumer Confidence Survey for January, reported at -25.4.
French Consumer Confidence for January is predicted at 90. Forex traders can compare this to French Consumer Confidence for December, reported at 89.
The Spanish Unemployment Rate for the fourth quarter is predicted at 11.90%. Forex traders can compare this to the Spanish Unemployment Rate for the first quarter, reported at 11.84%.
Eurozone M3 Money Supply for December is predicted to decrease by 0.7% annualized. Forex traders can compare this to Eurozone M3 Money Supply for November, which contracted by 0.9% annualized. Eurozone Private Sector Loans for December are predicted to rise by 0.6% annualized. Forex traders can compare this to Eurozone Private Sector Loans for November, which expanded by 0.5% annualized.
US Personal Income for December is predicted to increase by 0.3% monthly and Personal Spending by 0.4% monthly. Forex traders can compare this to Personal Income for November, which rose by 0.4% monthly, and Personal Spending by 0.2% monthly. The PCE Deflator for December is predicted to increase by 0.2% monthly and 2.6% annualized. Forex traders can compare this to the PCE Deflator for November, which decreased by 0.1% monthly and expanded by 2.6% annualized. The PCE Core Deflator for December is predicted to rise by 0.2% monthly and 3.0% annualized. Forex traders can compare this to the PCE Core Deflator for November, which increased by 0.1% monthly and 3.2% annualized.
US Pending Home Sales for December are predicted to increase by 1.5% monthly. Forex traders can compare this to US Pending Home Sales for January, which were flat at 0.0% monthly.
The forecast for the EUR/USD turned cautiously bullish after this currency pair corrected into its horizontal support area. Price action is now trading inside the Ichimoku Kinko Hyo Cloud, which began to narrow, with the Senkou Span A moving lower and the Senkou Span B moving higher. Short-term volatility could rise following a bearish crossover between the descending Tenkan-sen and the flat Kijun-sen. Traders should also monitor the CCI in extreme oversold territory, where a positive divergence has formed. A breakout above 100 could trigger a reversal rally. Can bulls regain control over the EUR/USD and push price action into its horizontal resistance area and a fresh 2024 high? 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 1.0860 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0825
- Take Profit Zone: 1.1140 – 1.1230
- Stop Loss Level: 1.0720
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 @ 1.0720
- Take Profit Zone: 1.0615 – 1.0665
- Stop Loss Level: 1.0770
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