Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Eurozone CPI for July is predicted to decrease 0.1% monthly and increase 2.2% annualized. Forex traders can compare this to the Eurozone CPI for June, which increased 0.3% monthly and 2.2% annualized. The Eurozone Core CPI for July is predicted to decrease 0.4% monthly and increase 0.7% annualized. Forex traders can compare this to the Eurozone Core CPI for June, which decreased 0.4% monthly and increased 0.7% annualized. The Eurozone Harmonized Core CPI for July is predicted to decrease 0.3% monthly and increase 0.9% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for June, which increased 0.2% monthly and 0.9% annualized.
The South African CPI for July is predicted to increase 1.1% monthly and 4.6% annualized. Forex traders can compare this to the South African CPI for June, which increased 0.2% monthly and 4.9% annualized. The Core CPI for July is predicted to increase 0.5% monthly and 3.1% annualized. Forex traders can compare this to Core CPI for June, which increased 0.3% monthly and 3.2% annualized.
The forecast for the EUR/ZAR turned bearish after price action failed to extend its rally, set a lower high, and formed a double top. After the ascending Tenkan-sen crossed above the flat Kijun-sen, traders should expect a few volatile trading sessions until bears take control. Adding to downside pressures is the Ichimoku Kinko Hyo Cloud, which shows signs of bearishness after the Senkou Span A started to drift lower. The CCI briefly moved into extreme overbought territory but reversed and displays plenty of downside potential. Can bears pressure the EUR/ZAR into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/ZAR remain inside the or breakdown below the 17.3150 to 17.4950 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 17.3960
- Take Profit Zone: 16.6200 – 16.7580
- Stop Loss Level: 17.6600
Should price action for the EUR/ZAR breakout above 17.4950, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 17.6600
- Take Profit Zone: 17.8815 – 18.0000
- Stop Loss Level: 17.4950
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