Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand retail sales for the second quarter dropped by 1.2% quarterly, and New Zealand core retail sales decreased by 1.0% quarterly. Economists predicted a contraction of 1.0% and 0.8%. Forex traders can compare this to New Zealand retail sales for the first quarter, which rose by 0.4% quarterly, and New Zealand core retail sales, which increased by 0.3% quarterly. New Zealand retail sales for the second quarter plunged by 3.6% annualized. Forex traders can compare this to New Zealand retail sales for the first quarter, which decreased by 2.4% annualized.
Canadian Retail Sales for July are predicted to decrease by 0.3% monthly, and Canadian Core Retail Sales to contract by 0.2% monthly. Forex traders can compare this to Canadian Retail Sales for June, which dropped by 0.8% monthly, and Canadian Core Retail Sales, which contracted by 1.3% monthly.
The forecast for the NZD/CAD turned cautiously bearish after this currency pair advanced into its horizontal resistance area. The Tenkan-sen and the Kijun-sen flatlined following a bullish crossover, suggesting a lack of upside momentum. The Senkou Span A of the Ichimoku Kinko Hyo Cloud started to drift higher following a bearish crossover, with the Senkou Span B flat, which could result in more short-term volatility. Traders should also monitor the CCI after moving below extreme overbought territory. This technical indicator has plenty of downside potential to lead this currency pair lower, and a move below zero could accelerate a sell-off. Can bears regain control over the NZD/CAD 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 NZD/CAD remain inside the or breakdown below the 0.8340 to 0.8390 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8360
- Take Profit Zone: 0.8130 – 0.8175
- Stop Loss Level: 0.8425
Should price action for the NZD/CAD break out above 0.8390, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8425
- Take Profit Zone: 0.8475 – 0.8510
- Stop Loss Level: 0.8390
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