Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Retail Sales for November are predicted to decrease by 2.0% monthly and to increase by 3.9% annualized. Forex traders can compare this to German Retail Sales for October, which increased by 2.6% monthly and 8.2% annualized. The German Unemployment Change for December is predicted at 10.0K and the German Unemployment Rate at 6.1%. Forex traders can compare this to the German Unemployment Change for November, reported at -39.0K, and to the German Unemployment Rate, reported at 6.1%. Eurozone M3 Money Supply for November is predicted to increase by 10.6% annualized. Forex traders can compare this to Eurozone M3 Money Supply for October, which increased by 10.5% annualized.
The US ISM Manufacturing Index for December is predicted at 56.6. Forex traders can compare this to the US ISM Manufacturing Index for November, reported at 57.5. ISM Prices Paid for December are predicted at 65.7. Forex traders can compare this to ISM Prices Paid for November, reported at 65.4.
The forecast for the EUR/USD remains cautiously bullish. The Eurozone and the US face increasing economic downside pressure with ballooning debt, which is more excessive in the US. Price action enjoys the support of the ascending Kijun-sen and Tenkan-sen, while the Ichimoku Kinko Hyo Cloud is sloping higher. The CCI recorded a series of lower highs. It suggests a weakening bullish trend, but it also has more upside potential from current levels. Can bulls prevail and force the EUR/USD to extend the advance into its next 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 1.2230 to 1.2310 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2265
- Take Profit Zone: 1.2520 – 1.2555
- Stop Loss Level: 1.2200
Should price action for the EUR/USD breakdown below 1.2230 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2200
- Take Profit Zone: 1.2030 – 1.2060
- Stop Loss Level: 1.2230
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