Source: PaxForex Premium Analytics Portal, Fundamental Insight
Traders will digest German election results, where coalition talks could take months. The left-leaning SPD secured 25.7% of the vote as the right-leaning CDU/CSU came in second at 24.1%, a historic low for the party dominating German politics after World War II. Possible coalition parties consist of the environmental party, The Greens with 14.8% of the vote, the business-friendly liberal FDP with 11.5%, and the right-wing party AfD at 10.5%.
Eurozone M3 Money Supply for August is predicted to increase 7.8% annualized. Forex traders can compare this to Eurozone M3 Money Supply for July, which increased 7.6% annualized.
US Preliminary Durable Goods Orders for August are predicted to increase 0.5% monthly, and Durables Excluding Transportation are predicted to increase 0.7% monthly. Forex traders can compare this to US Durable Goods Orders for July, which decreased 0.1% monthly, and Durables Excluding Transportation, which increased 0.8% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for August are predicted to increase 0.4% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for July, which increased 0.1% monthly.
The forecast for the EUR/USD turned bullish after its support area halted the sell-off, and price action formed a higher low. Adding to upside pressures is the Ichimoku Kinko Hyo Cloud, which stabilized and adopted early bullish developments. The Kijun-sen started to advance, and the descending Tenkan-sen is favored to follow suit. After the CCI completed a breakout from extreme oversold territory, it is adding to bullish momentum for price action. Can bulls take advantage and force the EUR/USD 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 1.1680 to 1.1755 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1715
- Take Profit Zone: 1.1875 – 1.1905
- Stop Loss Level: 1.1660
Should price action for the EUR/USD breakdown below 1.1680, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1660
- Take Profit Zone: 1.1580 – 1.1600
- Stop Loss Level: 1.1680
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