Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary French HCOB Manufacturing PMI for August is predicted at 45.0, the Preliminary French HCOB Services PMI at 47.5, and the Preliminary French HCOB Composite PMI at 47.5. Forex traders can compare this to the French HCOB Manufacturing PMI for July, reported at 45.1, the French HCOB Services PMI at 47.1, and the French HCOB Composite PMI at 46.6.
The Preliminary German HCOB Manufacturing PMI for August is predicted at 38.7, the Preliminary German HCOB Services PMI at 51.5, and the Preliminary German HCOB Composite PMI at 48.3. Forex traders can compare this to the German HCOB Manufacturing PMI for July, reported at 38.8, the German HCOB Services PMI at 52.3, and the German HCOB Composite PMI at 48.5.
The Preliminary Eurozone HCOB Manufacturing PMI for August is predicted at 42.6, the Preliminary Eurozone HCOB Services PMI at 50.5, and the Preliminary Eurozone HCOB Composite PMI at 48.5. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for July, reported at 42.7, the Eurozone HCOB Services PMI at 50.9, and the Eurozone HCOB Composite PMI at 48.6.
Preliminary Eurozone Consumer Confidence for August is predicted at -14.3. Forex traders can compare this to Eurozone Consumer Confidence for July, reported at -15.1.
The South African CPI for July is predicted to increase by 1.1% monthly and 5.0% annualized. Forex traders can compare this to the South African CPI for June, which rose by 0.2% monthly and 5.4% annualized. The Core CPI for July is predicted to expand by 0.6% monthly and 4.9% annualized. Forex traders can compare this to Core CPI for June, which increased by 0.4% monthly and 5.0% annualized.
The forecast for the EUR/ZAR turned cautiously bullish after this currency pair corrected below its Ichimoku Kinko Hyo Cloud, which began to shift higher, led by the ascending Senkou Span A. A bullish crossover above its flat Senkou Span B could initiate a continuation rally. Price action trades above its flat Kijun-sen but below its flat Tenkan-sen, setting up a battle between bulls and bears for the next directional move. Traders should also monitor the CCI, which dropped into extreme oversold territory but holds on to a higher low. A breakout in this technical indicator above -100 may provide a bullish catalyst. Can bulls regain control over the EUR/ZAR 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/ZAR remain inside the or breakout above the 20.2075 to 20.4475 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 20.3390
- Take Profit Zone: 21.0650 – 21.2545
- Stop Loss Level: 20.1500
Should price action for the EUR/ZAR breakdown below 20.2075, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 20.1500
- Take Profit Zone: 19.7850 – 19.8750
- Stop Loss Level: 20.2075
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