Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Industrial Production for September increased by 1.6% monthly. Economists predicted an increase of 2.7%. Forex traders can compare this to German Industrial Production for August, which increased by 0.5% monthly. Spanish Industrial Production for September is predicted to decrease by 3.8% annualized. Forex traders can compare this to Spanish Industrial Production for August, which decreased by 5.7% annualized.
The US NFP Report for October is predicted to show 600K job additions and an unemployment rate of 7.7%. Forex traders can compare this to the US NFP Report for September, which showed 661K job additions and an unemployment rate of 7.9%. Private Payrolls for October are predicted to show 690K job additions and Manufacturing Payrolls 50K job additions. Forex traders can compare this to Private Payrolls for September, which showed 877K job additions, and to Manufacturing Payrolls, which showed 66K job additions. The Average Work Week for October is predicted at 34.7 hours. Forex traders can compare this to the Average Work Week for September, reported at 34.7 hours. Average Hourly Earnings for October are predicted to increase by 0.2% monthly and by 4.6% annualized. Forex traders can compare this to Average Hourly Earnings for September, which increased by 0.1% monthly and by 4.7% annualized. The Labor Force Participation Rate for October is predicted at 61.4%. Forex traders can compare this to the Labor Force Participation Rate for September, reported at 61.4%.
US Wholesale Inventories for September are predicted to decrease by 0.1% monthly, and Wholesale Trade Sales are predicted to increase by 1.0% monthly. Forex traders can compare this to US Wholesale Inventories for August, which increased by 0.3% monthly, and to US Wholesale Trade Sales, which increased by 1.4% monthly. US Consumer Credit for September is predicted at 9.00B. Forex traders can compare this to US Consumer Credit for August, reported at -$7.22B.
The forecast for the EUR/USD carries a bullish bias after the breakout in price action above its Ichimoku Kinko Hyo Cloud. The flatlining Tenkan-sen and Kijun-sen are expected to start ascending, given the strong rally, supporting more upside. The CCI possesses more room to advance before it reaches overbought territory. With the US election results uncertain, Forex traders will focus on today’s US NFP report, which could disappoint judging by data over the past few weeks. Will bulls pressure this currency pair into its next horizontal support 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 1.1795 to 1.1880 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1835
- Take Profit Zone: 1.1965 – 1.2010
- Stop Loss Level: 1.1775
Should price action for the EUR/USD breakdown below 1.1795 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1775
- Take Profit Zone: 1.1690 – 1.1715
- Stop Loss Level: 1.1795
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