Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Industrial Production for January increased 2.7% monthly. Economists predicted a rise of 0.5%. Forex traders can compare this to German Industrial Production for December, which rose 1.1% monthly. Spanish Industrial Production for January is predicted to increase 2.3% annualized. Forex traders can compare this to Spanish Industrial Production for December, which rose 1.3% annualized. Italian Retail Sales for January are predicted to increase 1.1% monthly. Forex traders can compare this to Italian Retail Sales for December, which rose 0.9% monthly.
The preliminary Eurozone GDP for the fourth quarter is predicted to increase 0.3% quarterly and 4.6% annualized. Forex traders can compare this to the Eurozone GDP for the third quarter, which rose 2.2% quarterly and 3.9% annualized. Eurozone Employment for the fourth quarter is predicted to rise 0.5% quarterly and 2.1% annualized. Forex traders can compare this to Eurozone Employment for the third quarter, which increased 0.9% quarterly and 2.1% annualized.
The US NFIB Small Business Optimism Index for February is predicted at 97.5. Forex traders can compare this to the NFIB Small Business Optimism Index for January, reported at 97.1. The US Trade Balance for January is predicted at -$87.10B. Forex traders can compare this to the US Trade Balance for December, reported at -$80.70B. Economists predict the US IBD/TIPP Economic Optimism Index at 45.7. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for February, reported at 44.0.
US Wholesale Inventories for January are predicted to increase 0.8% monthly, and Wholesale Trade Sales by 1.2% monthly. Forex traders can compare this to US Wholesale Inventories for December, which rose 2.2% monthly, and US Wholesale Trade Sales, which expanded 0.2% monthly.
The forecast for the EUR/USD turned cautiously bullish after this currency pair paused its massive collapse at support. Confirming the lack of bearish pressures is the flat Kijun-sen, but the Tenkan-sen continues to move lower, suggesting volatility ahead. The Ichimoku Kinko Hyo Cloud adopted a bearish stance. It will pose as resistance and could result in longer-term bearishness. Traders should monitor the CCI in extreme oversold territory, where a positive divergence formed. A breakout above -100 could trigger a relief rally following days of heavy selling. Can bulls regain control of price action in the EUR/USD and pressure it 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 1.0800 to 1.0885 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0850
- Take Profit Zone: 1.1090 – 1.1150
- Stop Loss Level: 1.0765
Should price action for the EUR/USD breakdown below 1.0800, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0765
- Take Profit Zone: 1.0635 – 1.0690
- Stop Loss Level: 1.0800
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