Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German CPI for April is predicted to increase by 0.5% monthly and 2.2% annualized. Forex traders can compare this to the German CPI for March, which rose by 0.4% monthly and 2.2% annualized. The Final EU Harmonized German CPI for April is predicted to accelerate by 0.6% monthly and 2.4% annualized. Forex traders can compare this to the EU Harmonized German CPI for March, which surged by 0.6% monthly and 2.3% annualized.
The Final Spanish CPI for April is predicted to increase by 0.7% monthly and 3.3% annualized. Forex traders can compare this to the Spanish CPI for March, which rose by 0.8% monthly and 3.3% annualized. The Final Spanish Harmonized Spanish CPI for April is predicted to expand by 0.6% monthly and 3.4% annualized. Forex traders can compare this to the Spanish Harmonized CPI for March, which increased by 1.4% monthly and 3.3% annualized.
The German ZEW Survey Current Situation Index for May is predicted at -75.0, and the German ZEW Survey Economic Sentiment Index at 44.9. Forex traders can compare this to the German ZEW Survey Current Situation Index for April, reported at -79.2, and the German ZEW Survey Economic Sentiment Index, reported at 42.9. The Eurozone ZEW Survey Economic Sentiment Index for May is predicted at 46.1. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for April, reported at 43.9.
The US NFIB Small Business Optimism Index for April is predicted at 88.1. Forex traders can compare this to the NFIB Small Business Optimism Index for March, reported at 88.5.
The US PPI for April is predicted to rise by 0.3% monthly and 2.2% annualized. Forex traders can compare this to the US PPI for March, which increased by 0.2% monthly and 2.1% annualized. The US Core PPI for April is predicted to expand by 0.2% monthly and by 2.4% annualized. Forex traders can compare this to the US Core PPI for March, which accelerated by 0.2% monthly and 2.4% annualized.
The forecast for the EUR/USD remains cautiously bullish, with a pending bullish crossover between the ascending Tenkan-sen and the flat Kijun-sen likely to provide a short-term catalyst. The Ichimoku Kinko Hyo Cloud shows signs of narrowing, with the Senkou Span A drifting higher. Traders should also monitor the CCI after moving out of extreme overbought territory with more upside potential. Can bulls control 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 1.0760 to 1.0810 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0785
- Take Profit Zone: 1.0945 – 1.0980
- Stop Loss Level: 1.0740
Should price action for the EUR/USD breakdown below 1.0760, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0740
- Take Profit Zone: 1.0620 – 1.0650
- Stop Loss Level: 1.0760
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