Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Permanent/Long-Term Migration for October was reported at 884. Forex traders can compare this to Permanent/Long-Term Migration for September, reported at 595. Visitor Arrivals for October increased by 5.9% monthly, and External Migration & Visitors decreased by 96.8% monthly. Forex traders can compare this to Visitor Arrivals for September, which increased by 9.0% monthly, and to External Migration & Visitors, which decreased by 96.7% monthly.
Eurozone Industrial Production for October is predicted to increase by 2.0% monthly and to decrease by 4.4% annualized. Forex traders can compare this to Eurozone Industrial Production for September, which decreased by 0.4% monthly and by 6.8% annualized.
The Euro remains strong amid the Covid-19 pandemic, but the EUR/NZD is poised for an extension of its correction as the ECB announced more stimulus. It expanded its bond-buying program by €500 billion to €1.85 trillion. The ECB added that it believes measures will suffice until the end of 2021, but challenging times remain ahead. Government debt levels soared and will hit new all-time highs in 2021, while unemployment is on the rise.
The forecast for the EUR/NZD remains bearish after price action moved below its ascending Tenkan-sen. With the descending Kijun-sen applying downside pressures below the descending Ichimoku Kinko Hyo Cloud, this currency pair has room to extend its sell-off. The CCI moved out of extreme overbought conditions and into negative territory, suggesting bearish momentum accumulates. Will bears force more downside in the EUR/NZD? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/NZD remain inside the or breakdown below the 1.7075 to 1.7160 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7120
- Take Profit Zone: 1.6615 – 1.6700
- Stop Loss Level: 1.7240
Should price action for the EUR/NZD breakout above 1.7160 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7240
- Take Profit Zone: 1.7340 – 1.7410
- Stop Loss Level: 1.7160
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