Source: PaxForex Premium Analytics Portal, Fundamental Insight
South African M3 Money Supply for April rose by 5.75% annualized. Forex traders can compare this to South African M3 Money Supply for March, which accelerated by 6.85% annualized. Private Sector Credit for April expanded by 3.90% annualized. Forex traders can compare this to Private Sector Credit for March, which rose by 5.18% annualized.
US Personal Income for April is predicted to increase by 0.3% monthly, and Personal Spending by 0.3% monthly. Forex traders can compare this to Personal Income for March, which rose by 0.5% monthly, and Personal Spending by 0.8% monthly. The PCE Deflator for April is predicted to increase by 0.3% monthly and 2.7% annualized. Forex traders can compare this to the PCE Deflator for March, which rose by 0.3% monthly and 2.7% annualized. The PCE Core Deflator for April is predicted to expand by 0.3% monthly and 2.8% annualized. Forex traders can compare this to the PCE Core Deflator for March, which increased by 0.3% monthly and 2.8% annualized.
The US Chicago PMI for May is predicted at 41.1. Forex traders can compare this to the US Chicago PMI for April, reported at 37.9.
The forecast for the USD/ZAR turned cautiously bearish after this currency pair spiked into its horizontal resistance area and lost upside momentum. Short-term volatility could increase with the Kijun-sen moving lower and the Tenkan-sen drifting higher. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are descending, adding longer-term bearish pressures. Traders should also monitor the CCI after reaching unsustainable levels in extreme overbought territory. A breakdown below could spark a price action reversal. Can bears regain control over the USD/ZAR and force this currency pair 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 18.7350 to 18.8400 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 18.7800
- Take Profit Zone: 18.0245 – 18.2150
- Stop Loss Level: 18.9300
Should price action for the USD/ZAR break out above 18.8400, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 18.9300
- Take Profit Zone: 19.1200 – 19.1900
- Stop Loss Level: 18.8400
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