Source: PaxForex Premium Analytics Portal, Fundamental Insight

The South African PPI for December is predicted to increase 0.8% monthly and 10.2% annualized. Forex traders can compare this to the South African PPI for November, which increased 1.4% monthly and 9.6% annualized. The South African Reserve Bank is expected to raise interest rates by 25 basis points from 3.75% to 4.00%. Forex traders can compare this to the previous South African Reserve Bank meeting, where interest rates remained unchanged at 3.75%.

US Initial Jobless Claims for the week of January 22nd are predicted at 260K, and US Continuing Claims for the week of January 15th are predicted at 1,650K. Forex traders can compare this to US Initial Jobless Claims for the week of January 15th, reported at 286K, and to US Continuing Claims for the week of January 8th, reported at 1,635K.

US Preliminary Durable Goods Orders for December are predicted to decrease 0.5% monthly, and Durables Excluding Transportation are predicted to increase 0.4% monthly. Forex traders can compare this to US Durable Goods Orders for November, which increased 2.6% monthly, and Durables Excluding Transportation, which increased 0.8% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for December are predicted to increase 0.4% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for November, which increased 0.9% monthly.

The Preliminary US GDP for the fourth quarter is predicted to increase 5.5% quarterly. Forex traders can compare this to the third-quarter GDP, which increased 2.3% quarterly. The Preliminary GDP Price Index for the fourth quarter is predicted to increase by 6.0% annualized. Forex traders can compare this to the third quarter GDP Price Index, which increased 5.9% annualized. The Preliminary Core PCE for the fourth quarter is predicted to increase by 4.9% annualized. Forex traders can compare this to the third quarter Core PCE, which increased 4.6% annualized.

US Pending Home Sales for December are predicted to decrease 0.2% monthly. Forex traders can compare this to US Pending Home Sales for November, which decreased 2.2% monthly.

The forecast for the USD/ZAR turned bearish after this currency pair stalled at the bottom of its bearish Ichimoku Kinko Hyo Cloud, following a breakdown. While the Kijun-sen and the Tenkan-sen turned sideways, they show a general bearish trend. Traders should expect a continuation of the sell-off and a rise in short-term volatility. The CCI accelerated out of extreme oversold territory and crossed above 0 from where a reversal is likely. Can bears maintain control over the USD/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 USD/ZAR remain inside the or breakdown below the 15.2500 to 15.5500 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 15.3900
• Take Profit Zone: 14.4975 – 14.7220
• Stop Loss Level: 15.7150

Should price action for the USD/ZAR breakout above 15.5500, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 15.7150
• Take Profit Zone: 16.0830 – 16.2560
• Stop Loss Level: 15.5500

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