Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary French HCOB Manufacturing PMI for January is predicted at 42.5, the Preliminary French HCOB Services PMI at 46.0, and the Preliminary French HCOB Composite PMI at 45.2. Forex traders can compare this to the French HCOB Manufacturing PMI for December, reported at 42.1, the French HCOB Services PMI at 45.7, and the French HCOB Composite PMI at 44.8.
The Preliminary German HCOB Manufacturing PMI for January is predicted at 43.7, the Preliminary German HCOB Services PMI at 49.5, and the Preliminary German HCOB Composite PMI at 47.8. Forex traders can compare this to the German HCOB Manufacturing PMI for December, reported at 43.3, the German HCOB Services PMI at 49.3, and the German HCOB Composite PMI at 47.4.
The Preliminary Eurozone HCOB Manufacturing PMI for January is predicted at 44.8, the Preliminary Eurozone HCOB Services PMI at 49.0, and the Preliminary Eurozone HCOB Composite PMI at 48.0. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for December, reported at 44.4, the Eurozone HCOB Services PMI at 48.8, and the Eurozone HCOB Composite PMI at 47.6.
The South African CPI for December is predicted to increase by 0.1% monthly and 5.2% annualized. Forex traders can compare this to the South African CPI for November, which decreased by 0.1% monthly and accelerated by 5.5% annualized. The Core CPI for December is predicted to expand by 0.3% monthly and 4.6% annualized. Forex traders can compare this to Core CPI for November, which increased by 0.2% monthly and 4.5% annualized.
Traders will also receive the German Bundesbank Monthly Report. They will seek clues covering economic issues, monetary policy, and financial and economic policy issues. The UK and the US will also report January PMI data, and traders should brace for volatility.
The forecast for the EUR/ZAR is cautiously bearish after this currency pair failed to extend its rally above its horizontal resistance area. Price action now trades below its Tenkan-sen, which flatlined, and above its Kijun-sen, which continues to move higher, narrowing the band. The Ichimoku Kinko Hyo Cloud also flatlined, with the Senkou Span B in a sideways move since the beginning of 2024 and the Senkou Span A drifting in a narrow range, confirming the lack of bullish momentum. Traders should also monitor the CCI following its breakdown from extreme overbought territory. Can bears regain control over the EUR/ZAR and force price action 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 20.5940 to 20.6975 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 20.6300
- Take Profit Zone: 20.0950 – 20.2035
- Stop Loss Level: 20.7550
Should price action for the EUR/ZAR breakout above 20.6975, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 20.7550
- Take Profit Zone: 20.8945 – 20.9300
- Stop Loss Level: 20.6975
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
