Source: PaxForex Premium Analytics Portal, Fundamental Insight
French Consumer Confidence for October came in at 84. Economists predicted a figure of 83. Forex traders can compare this to French Consumer Confidence for September, reported at 83.
The Preliminary Spanish GDP for the third quarter is predicted to increase 0.2% quarterly and 1.6% annualized. Forex traders can compare this to the Spanish GDP for the second quarter, which rose 0.5% quarterly and 2.2% annualized.
Italian Business Confidence for October is predicted at 96.0, and Italian Consumer Confidence is predicted at 105.2. Forex traders can compare this to Italian Business Confidence for September, reported at 96.4, and Italian Consumer Confidence at 105.4.
US Personal Income for September is predicted to increase by 0.4% monthly and Personal Spending by 0.5% monthly. Forex traders can compare this to Personal Income for August, which rose by 0.4% monthly, and Personal Spending by 0.4% monthly. The PCE Deflator for September is predicted to expand by 0.3% monthly and 3.4% annualized. Forex traders can compare this to the PCE Deflator for August, which increased by 0.4% monthly and 3.5% annualized. The PCE Core Deflator for September is predicted to rise by 0.3% monthly and 3.7% annualized. Forex traders can compare this to the PCE Core Deflator for August, which increased by 0.1% monthly and 3.9% annualized.
The final US Michigan Consumer Sentiment for October is predicted at 63.0. Forex traders can compare this to US Michigan Consumer Confidence for September, reported at 68.1. Final Current Conditions for October are predicted at 66.7, and Final Expectations are predicted at 60.7. Forex traders can compare this to Current Conditions for September, reported at 71.4, and Expectations at 66.0. Final US Michigan Inflation Expectations for October are predicted at 3.8%, and Final US Michigan 5-year Inflation Expectations at 3.0%. Forex traders can compare this to Final US Michigan Inflation Expectations for September, reported at 3.2%, and Final US Michigan 5-year Inflation Expectations at 2.8%.
The forecast for the EUR/USD remains bullish after this currency pair completed a breakout above its horizontal support area. Following a bullish crossover, the Tenkan-sen continues moving higher, and the flat Kijun-sen could follow next week. The Ichimoku Kinko Hyo Cloud shows signs of a pending narrowing, with the Senkou Span A drifting higher. Traders should also monitor the CCI after a double breakdown from extreme overbought territory and below zero. This technical indicator has stabilized with plenty of upside potential. A breakout above zero could trigger the expected continuation rally. Can bulls maintain 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 1.0520 to 1.0580 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0555
- Take Profit Zone: 1.0800 – 1.0865
- Stop Loss Level: 1.0495
Should price action for the EUR/USD breakdown below 1.0520, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0495
- Take Profit Zone: 1.0400 – 1.0450
- Stop Loss Level: 1.0520
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