Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German GfK Consumer Confidence Survey for August was reported at -0.3. Economists predicted a figure of -5.0. Forex traders can compare this to the German GfK Consumer Confidence Survey for July, reported at -9.0. Preliminary Eurozone Consumer Confidence for July is predicted at -12.0. Forex traders can compare this to the previous Eurozone Consumer Confidence for June, reported at -14.7.
US Initial Jobless Claims for the week of July 18th are predicted at 1,300K, and US Continuing Claims for the week of July 11th are predicted at 17,067K. Forex traders can compare this to US Initial Jobless Claims for the week of July 11th, which were reported at 1,300K, and to US Continuing Claims for the week of July 4th, which were reported at 17,338K. The US Leading Index for June is predicted to increase by 2.1% monthly. Forex traders can compare this to the US Leading Index for May, which increased by 2.8% monthly.
The forecast for the EUR/USD remains bullish after Brussels agreed on an economic support package, although at less favorable terms than initially discussed. The Covid-19 pandemic continues to depress the global economy, but the EU is in a healthier condition than the US. The Kijun-sen and Tenkan-sen support more upside in this currency pair, while the Ichimoku Kinko Hyo Cloud is gradually shifting higher. Will bulls push this currency pair 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 1.1540 to 1.1620 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1585
- Take Profit Zone: 1.1755 – 1.1815
- Stop Loss Level: 1.1450
Should price action for the EUR/USD breakdown below 1.1540 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1450
- Take Profit Zone: 1.1285 – 1.1325
- Stop Loss Level: 1.1540
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