Source: PaxForex Premium Analytics Portal, Fundamental Insight
The South African Current Account for the first quarter is predicted at ZAR182.1B, and the Current Account Percentage of GDP at 3.55%. Forex traders can compare this to the South African Current Account for the fourth quarter, reported at ZAR197.7B, and to the Current Account Percentage of GDP at 3.70%. South African Mining Production for April is predicted to increase by 105.0% monthly. Forex traders can compare this to South African Mining Production for March, which increased by 21.3%.
US Initial Jobless Claims for the week of June 5th are predicted at 370K, and US Continuing Claims for the week of May 29th are predicted at 3,602K. Forex traders can compare this to US Initial Jobless Claims for the week of May 29th, reported at 385K, and to US Continuing Claims for the week of May 22nd, reported at 3,771K. The US CPI for May is predicted to increase by 0.4% monthly and by 4.7% annualized. Forex traders can compare this to the US CPI for April, which increased by 0.8% monthly and by 4.2% annualized. The US Core CPI for May is predicted to increase by 0.4% monthly and by 3.4% annualized. Forex traders can compare this to the US Core CPI for April, which increased by 0.9% monthly and by 3.0% annualized.
The forecast for the USD/ZAR turned bearish again after a small advance. With the Kijun-sen, the Tenkan-sen, and the Ichimoku Kinko Hyo Cloud all descending, traders should expect the downtrend to continue. Volatility may increase after today’s CPI report out of the US and with the CCI moving higher, but the downtrend is intact.US Dollar weakness is expected to continue, but will bears take advantage of the momentum and pressure the USD/ZAR into its next 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 13.6500 to 13.8600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 13.7275
- Take Profit Zone: 12.8260 – 13.0760
- Stop Loss Level: 14.8365
Should price action for the USD/ZAR breakout above 13.8600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 14.1000
- Take Profit Zone: 14.3820 – 14.5355
- Stop Loss Level: 13.8600
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