Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German ZEW Survey Current Situation Index for June is predicted at -65.0, and the German ZEW Survey Economic Sentiment Index at 49.6. Forex traders can compare this to the German ZEW Survey Current Situation Index for May, reported at -72.3, and the German ZEW Survey Economic Sentiment Index, reported at 47.1. The Eurozone ZEW Survey Economic Sentiment Index for June is predicted at 47.8. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for May, reported at 47.0.
The Final Eurozone CPI for May is predicted to increase by 0.2% monthly and by 2.6% annualized. Forex traders can compare this to the Eurozone CPI for April, which rose by 0.6% monthly and 2.4% annualized. The Final Eurozone Core CPI for May is predicted to accelerate by 0.4% monthly and by 2.9% annualized. Forex traders can compare this to the Eurozone Core CPI for April, which expanded by 0.7% monthly and 2.7% annualized. The Final Eurozone CPI excluding Tobacco for May is predicted to increase by 0.4% monthly and 2.9% annualized. Forex traders can compare this to the Eurozone CPI excluding Tobacco for April, which rose by 0.6% monthly and 2.8% annualized.
US Retail Sales for May are predicted to increase by 0.3% monthly and Core Retail Sales by 0.2% monthly. Forex traders can compare this to US Retail Sales for April, which were flat at 0.0% monthly, and Core Retail Sales, which rose by 0.2% monthly.
US Industrial Production for May is predicted to rise by 0.3% monthly, and Manufacturing Production by 0.3% monthly. Forex traders can compare this to US Industrial Production for April, which was flat at 0.0% monthly, and to Manufacturing Production, which decreased by 0.3% monthly. Capacity Utilization for May is predicted at 78.6%. Forex traders can compare this to Capacity Utilization for April, reported at 78.4%.
US Business Inventories for April are predicted to increase by 0.3% monthly, and Retail Inventories, excluding Autos, by 0.3%. Forex traders can compare this to US Business Inventories for March, which decreased by 0.1% monthly, and Retail Inventories excluding Autos, which contracted by 0.2%.
US TIC Net Long-Term Transactions for April are predicted at $69.0B, and US TIC Net Long-Term Transactions, including Swaps, at $69.3B. Forex traders can compare this to US TIC Net Long-Term Transactions for March, reported at $100.5B, and US TIC Net Long-Term Transactions, including Swaps, at $100.5B.
The forecast for the EUR/USD turned cautiously bullish after this currency pair reached its horizontal support area. Short-term volatility may increase after the Tenkan-sen and the Kijun-sen have flatlined. The bullish crossover in the Ichimoku Kinko Hyo Cloud adds longer-term bullish momentum. Traders should also monitor the CCI in extreme oversold territory. A breakout above -100 could trigger the next rally. Can bulls regain control over the EUR/USD and push price action 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 1.0710 to 1.0740 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0725
- Take Profit Zone: 1.0875 – 1.0915
- Stop Loss Level: 1.0670
Should price action for the EUR/USD break down below 1.0710, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0670
- Take Profit Zone: 1.0575 – 1.0600
- Stop Loss Level: 1.0710
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