Source: PaxForex Premium Analytics Portal, Fundamental Insight
South African Mining Production for March is predicted to increase by 3.9% monthly. Forex traders can compare this to South African Mining Production for February, which increased by 0.8%.
US Initial Jobless Claims for the week of May 8th are predicted at 490K, and US Continuing Claims for the week of May 1st are predicted at 3,655K. Forex traders can compare this to US Initial Jobless Claims for the week of May 1st, reported at 498K, and to US Continuing Claims for the week of April 24th, reported at 3,690K. The US PPI for April is predicted to increase by 0.3% monthly and by 5.9% annualized. Forex traders can compare this to the US PPI for March, which increased by 1.0% monthly and 4.2% annualized. The US Core PPI for April is predicted to increase by 0.4% monthly and 3.7% annualized. Forex traders can compare this to the US Core PPI for March, which increased by 0.7% monthly and by 3.1% annualized.
The forecast for the USD/ZAR remains bearish, with transitory inflationary pressures rising faster than expected as debt expands. The US Fed vows to keep interest rates unchanged, but they rose three to four times faster than their models assumed. Volatility in the USD/ZAR may increase with the Tenkan-sen and the Kijun-sen flat and price action below its gradually descending Ichimoku Kinko Hyo Cloud. The CCI moved out of extreme oversold territory, allowing traders to look for new selling opportunities. Can bears gather enough momentum to pressure 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 14.0000 to 14.2400 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 14.1060
- Take Profit Zone: 13.2215 – 13.3545
- Stop Loss Level: 14.3700
Should price action for the USD/ZAR breakout above 14.2400, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 14.3700
- Take Profit Zone: 14.7650 – 14.8520
- Stop Loss Level: 14.2400
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