Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German WPI for May decreased by 1.1% monthly and 2.6% annualized. Economists predicted a drop of 1.0% and 3.3%. Forex traders can compare this to the German WPI for April, which contracted by 0.4% monthly and 0.5% annualized.
Eurozone Industrial Production for April is predicted to increase by 1.0% monthly and 0.8% annualized. Forex traders can compare this to Eurozone Industrial Production for March, which dropped by 4.1% monthly and 1.4% annualized.
The US PPI for May is predicted to decrease by 0.1% monthly and increase by 1.5% annualized. Forex traders can compare this to the US PPI for April, which rose by 0.2% monthly and 2.3% annualized. The US Core PPI for May is predicted to expand by 0.2% monthly and by 2.9% annualized. Forex traders can compare this to the US Core PPI for April, which increased by 0.2% monthly and 3.2% annualized.
US Crude Oil Inventories Change for the week ending June 9th are predicted at 1.482M. Traders can compare this to US Crude Oil Inventories Change for the week ending June 2nd, reported at -0.451M. US Gasoline Inventories Change for the week ending June 9th are predicted at 0.637M, and US Distillate Stocks Change at 0.922M. Traders can compare this to US Gasoline Inventories Change for the week ending June 2nd, reported at 2.746M, and US Distillate Stocks Change at 5.075M.
The US FOMC Interest Rate Decision is predicted to show interest rates at 5.25%. Forex traders can compare this to the previous US FOMC Interest Rate Decision, which showed interest rates at 5.25%. Markets expect the US Federal Reserve to pause its interest rate hikes for the first time in eleven meetings. The decrease in headline inflation may prompt a hawkish pause before the FOMC could raise rates further starting the next meeting, as core inflation and the labor market remain hot and point to more inflationary pressures ahead.
The forecast for the EUR/USD remains bullish after this currency pair halted its correction at the beginning of June. Price action is trapped between its flat Kijun-sen and flat Tenkan-sen, and the Ichimoku Kinko Hyo Cloud also flatlined, suggesting a short-term holding pattern. Traders should monitor the CCI after it accelerated from extreme oversold territory into extreme overbought conditions. A breakdown below 100 may unfold, but as long as this technical indicator trades above zero, the uptrend remains intact. Can bulls withstand bearish attacks and guide the EUR/USD into its horizontal resistance area and a new 2023 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 1.0745 to 1.0820 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0785
- Take Profit Zone: 1.0990 – 1.1095
- Stop Loss Level: 1.0695
Should price action for the EUR/USD breakdown below 1.0745, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0695
- Take Profit Zone: 1.0575 – 1.0635
- Stop Loss Level: 1.0745
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