Source: PaxForex Premium Analytics Portal, Fundamental Insight
The South African PPI for January is predicted to drop by 0.4% monthly and increase by 12.8% annualized. Forex traders can compare this to the South African PPI for December, which came in at 0.0% monthly and surged by 13.5% annualized.
US Initial Jobless Claims for the week of February 18th are predicted at 200K, and US Continuing Claims for the week of February 11th at 1,700K. Forex traders can compare this to US Initial Jobless Claims for the week of February 11th, reported at 194K, and US Continuing Claims for the week of February 4th, reported at 1,696K.
The Advanced US GDP for the fourth quarter is predicted to increase by 2.9% annualized. Forex traders can compare this to the third quarter GDP, which rose 3.2% annualized. The GDP Price Index for the fourth quarter is predicted to rise 3.5% annualized. Forex traders can compare this to the third quarter GDP Price Index, which rose 4.4% annualized. The Core PCE for the fourth quarter is predicted to expand by 3.9% annualized. Forex traders can compare this to the third quarter Core PCE, which increased by 4.7% annualized.
US Natural Gas Inventories for the week ending February 17th are predicted at -67B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending February 10th, reported at -100B cubic feet.
US Crude Oil Inventories Change for the week ending February 17th are predicted at 2.083M. Traders can compare this to US Crude Oil Inventories Change for the week ending February 10th, reported at 16.283M. US Gasoline Inventories Change for the week ending February 17th are predicted at 0.108M, and US Distillate Stocks Change at -1.126M. Traders can compare this to US Gasoline Inventories Change for the week ending February 10th, reported at 2.317M, and US Distillate Stocks Change at -1.285M. Weekly Refinery Utilization Rates for the week ending February 17th decreased by 0.2% week-over-week. Forex traders can compare this to Weekly Refinery Utilization Rates for the week ending February 10th, which dropped by 1.4% week-over-week.
The short-term forecast for the USD/ZAR turned bearish after a powerful rally spanning 1,600+ pips is losing momentum. Volatility could increase as bulls and bears square off over directional control. The Tenkan-sen flatlined, but the Kijun-sen resumed its uptrend. Bulls get assistance from the ascending Ichimoku Kinko Hyo Cloud after the Senkou Span A completed a bullish crossover above the Senkou Span B. Bears get a boost from the CCI, which formed a negative divergence in extreme overbought territory. A breakdown below 100 may offer the necessary boost for bears to regain control over price action. Will bears overpower bulls and force the USD/ZAR 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 USD/ZAR remain inside the or breakdown below the 18.2250 to 18.3750 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 18.2775
- Take Profit Zone: 17.5600 – 17.7275
- Stop Loss Level: 18.5650
Should price action for the USD/ZAR breakout above 18.3750, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 18.5650
- Take Profit Zone: 18.9500 – 19.0200
- Stop Loss Level: 18.3750
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