Source: PaxForex Premium Analytics Portal, Fundamental Insight

German Industrial Production for April is predicted to increase 0.5% monthly. Forex traders can compare this to German Industrial Production for March, which increased 2.5% monthly. The German ZEW Survey Current Situation Index for June is predicted at -27.8, and the German ZEW Survey Economic Sentiment Index at 86.0. Forex traders can compare this to the German ZEW Survey Current Situation Index for May, reported at -40.1, and to the German ZEW Survey Economic Sentiment Index, reported at 84.4. 

The advanced Eurozone GDP for the first quarter is predicted to decrease 0.6% quarterly and 1.8% annualized. Forex traders can compare this to the previous Eurozone GDP for the fourth quarter, which decreased 0.7% quarterly and 4.9% annualized. Eurozone Employment for the first quarter is predicted to decrease 0.3% quarterly and 2.1% annualized. Forex traders can compare this to Eurozone Employment for the fourth quarter, which increased 0.3% quarterly and decreased 1.9% annualized.

The South African GDP for the first quarter is predicted to increase 2.5% quarterly and decrease 3.2% annualized. Forex traders can compare this to the South African GDP for the fourth quarter, which increased 6.3% quarterly and decreased 4.1% annualized. 

The forecast for the EUR/ZAR remains bearish with the economic outlook for the Eurozone and how the ECB will handle inflation than for South Africa and the SARB. While the Tenkan-sen continues to descend, the Kijun-sen stabilized, but the Ichimoku Kinko Hyo Cloud remains in a downtrend. It supplies plenty of bearish pressures. The CCI is moving higher inside extreme oversold territory and likely to break out before reversing, with much downside potential ahead. Will bears remain in charge of price action in the EUR/ZAR and force it into its next 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 16.2270 to 16.5625 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 16.4675
• Take Profit Zone: 15.5775 – 15.6970
• Stop Loss Level: 16.8500

Should price action for the EUR/ZAR breakout above 16.5625, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 16.8500
• Take Profit Zone: 17.1535 – 17.2900
• Stop Loss Level: 16.5625

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