Source: PaxForex Premium Analytics Portal, Fundamental Insight
The South African PPI for June is predicted to increase by 0.5% monthly and 6.0% annualized. Forex traders can compare this to the South African PPI for May, which rose by 0.6% monthly and 7.3% annualized.
US Preliminary Durable Goods Orders for June are predicted to rise by 1.0% monthly, and Durables Excluding Transportation to come in flat at 0.0% monthly. Forex traders can compare this to US Durable Goods Orders for May, which rose by 1.7% monthly, and Durables Excluding Transportation by 0.6% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for June are predicted to decrease by 0.1% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for May, which rose by 0.7% monthly.
US Initial Jobless Claims for the week of July 22nd are predicted at 235K, and US Continuing Claims for the week of July 15th at 1,750K. Forex traders can compare this to US Initial Jobless Claims for the week of July 15th, reported at 228K, and US Continuing Claims for the week of July 8th at 1,754K.
The Advanced US GDP for the second quarter is predicted to expand by 1.8% quarterly. Forex traders can compare this to the first quarter GDP, which rose 2.0% quarterly. GDP Sales for the second quarter are predicted to increase by 1.4% quarterly. Forex traders can compare this to GDP sales for the first quarter, which rose 4.2%. The GDP Price Index for the second quarter is predicted to accelerate by 3.0% quarterly and the Core PCE by 4.0%. Forex traders can compare this to the first quarter GDP Price Index, which rose 4.1% quarterly, and the Core PCE, which increased 4.9% annualized.
The US Trade Balance for June is predicted at -$91.80B. Forex traders can compare this to the US Trade Balance for May, reported at -$91.13B.
US Preliminary Wholesale Inventories for June are predicted to decrease by 0.3% monthly. Forex traders can compare this to US Wholesale Inventories for May, which were flat at 0.0% monthly.
US Pending Home Sales for June are predicted to decrease by 0.5% monthly. Forex traders can compare this to US Pending Home Sales for February, which dropped by 2.7% monthly.
The US Kansas City Fed Manufacturing Activity Index for July is predicted at -6. Forex traders can compare this to the US Kansas City Fed Manufacturing Activity Index for June, reported at -10. The US Kansas City Fed Composite Index for July is predicted at -7. Forex traders can compare this to the US Kansas City Fed Composite Index for June, reported at -12.
The forecast for the USD/ZAR remains cautiously bearish after this currency pair after the downward shifting Ichimoku Kinko Hyo Cloud rejected price action. Volatility could rise with the Kijun-sen and the Tenkan-sen flat, suggesting bulls and bears will wrestle for directional control. Traders should also monitor the CCI following a false breakout and reversal. This technical indicator has plenty of downside potential from current levels. Can bears maintain selling pressure on the USD/ZAR and pressure price action into its horizontal support area and a fresh 2023 low? 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 17.5170 to 17.7300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 17.6060
- Take Profit Zone: 16.4890 – 16.6780
- Stop Loss Level: 18.0400
Should price action for the USD/ZAR breakout above 17.7300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 18.0400
- Take Profit Zone: 18.3315 – 18.5220
- Stop Loss Level: 17.7300
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