Here are the key factors to keep in mind today for Euro trades:
- German Industrial Production: German industrial production increased by 0.6% in January as compared to December and 0.9% annualized. Economists expected an increase of 0.5% and a contraction of 0.2% which can be compared to December upward revised increase of 1.0% and 0.5%. Germany continues to put a floor under Eurozone economic data.
- Eurozone Fourth-Quarter GDP: Fourth-quarter GDP rose 0.3% and posted an annualized increase of 0.9%. This matched expectations as well as data from the previous report. Government expenditure rose 0.2%, beating estimates for an increase of 0.1% and matching the 0.2% previously reported. Gross Fixed capital surprised with an increase of 0.4%, beating estimates for an increase of 0.3% and reversing the previously reported contraction of 0.3%. Household consumption slowed down to 0.4% matching the expected slowdown to 0.4% from the previously reported 0.5%.
Here is the key factor to keep in mind today for US Dollar trades:
- NFP Report: The Bureau of Labor Statistics released the highly anticipated NFP report for the month of February. The report followed the usual pattern over the past two years where the headline figure is good, the unemployment rate drops but the composition is terrible. Forex traders buy the US Dollar regardless. The headline figure showed an increase of 295,000 jobs and the unemployment rate dropped to 5.5%. The labor force participation rate decrease to 62.8%, average hourly earnings dropped double digits down to 2.0% and most importantly the household survey only reported 98,000 job creations.
Should price action for the EURUSD remain inside the 1.0800 to 1.090 zone or breakout above it the following trade set-up is recommended:
- Timeframe: M1
- Recommendation: Long Position
- Entry Level: Short Position @ 1.0900
- Take Profit Zone: 1.3400 – 1.3900
- Stop Loss Level: 1.0400
Should price action for the EURUSD breakdown above 1.0800 the following trade set-up is recommended:
- Timeframe: M1
- Recommendation: Short Position
- Entry Level: Long Position @ 1.0700
- Take Profit Zone: 1.0000 – 1.0200
- Stop Loss Level: 1.0900
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.