Source: PaxForex Premium Analytics Portal, Fundamental Insight
South African Mining Production for September is predicted to decrease by 1.5% annualized. Forex traders can compare this to South African Mining Production, which decreased by 3.3% annualized. The South African unemployment rate for the third quarter is predicted at 33.4%. Forex traders can compare this to the South African unemployment rate for the second quarter, which was reported at 23.3%.
US Initial Jobless Claims for the week of November 7th are predicted at 735K, and US Continuing Claims for the week of October 31st are predicted at 6,900K. Forex traders can compare this to US Initial Jobless Claims for the week of October 31st, which were reported at 751K, and to US Continuing Claims for the week of October 24th, which were reported at 7,285K. The US CPI for October is predicted to increase by 0.1% monthly and by 1.3% annualized. Forex traders can compare this to the US CPI for September, which increased by 0.2% monthly and by 1.4% annualized. The US Core CPI for October is predicted to increase by 0.2% monthly and by 1.8% annualized. Forex traders can compare this to the US Core CPI for September, which increased by 0.2% monthly and by 1.7% annualized. The US Monthly Budget Statement for October is predicted at -$274.5B. Forex traders can compare this to the US Monthly Budget Statement for September, reported at -$125.0B.
The forecast for the USD/ZAR remains bearish after a small advance shook off extreme oversold conditions. While South Africa is expected to report a record unemployment rate, the US labor market remains weaker than anticipated. Even without new lockdown restrictions in the US, consumer behavior is likely to remain depressed, given the new daily infections. The Tenkan-sen and Kijun-sen are drifting lower, the Ichimoku Kinko Hyo Cloud slopes to the downside, and the CCI is favored to retreat from its recent advance. Will bears force 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 15.6000 to 15.8100 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 15.7050
- Take Profit Zone: 14.6700 – 14.8500
- Stop Loss Level: 15.9600
Should price action for the USD/ZAR breakout above 15.8100 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 15.9600
- Take Profit Zone: 16.3200 – 16.4900
- Stop Loss Level: 15.8100
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