Forex Market: EUR/CZK daily trading forecast

Friday’s trade saw EUR/CZK within the range of 27.7860-27.9437. The pair closed at 27.9175, gaining 0.40% on a daily basis.

At 6:33 GMT today EUR/CZK was up 0.04% for the day to trade at 27.9280. The pair touched a daily high at 27.9487 at 4:30 GMT.

Fundamental view

Euro zone

The surplus on Euro zones seasonally adjusted trade balance probably narrowed to 14.9 billion EUR during June from a surplus of 15.3 billion EUR, registered in April. The trade balance, as an indicator, measures the difference in value between region’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form Euro area’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate domestic demand. In case the trade balance surplus narrowed more than anticipated, this would have a bearish effect on the common currency. Eurostat will release the official numbers at 9:00 GMT.

At 10:00 GMT Deutsche Bundesbank is to publish its monthly report. If it introduced surprising data, this would certainly trigger a move in the euro.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 27.8824. In case EUR/CZK manages to breach the first resistance level at 27.9788, it will probably continue up to test 28.0401. In case the second key resistance is broken, the pair will probably attempt to advance to 28.1365.

If EUR/CZK manages to breach the first key support at 27.8211, it will probably continue to slide and test 27.7247. With this second key support broken, the movement to the downside will probably continue to 27.6634.

The mid-Pivot levels for today are as follows: M1 – 27.6941, M2 – 27.7729, M3 – 27.8518, M4 – 27.9306, M5 – 28.0095, M6 – 28.0883.

In weekly terms, the central pivot point is at 27.9260. The three key resistance levels are as follows: R1 – 27.9518, R2 – 27.9746, R3 – 28.0004. The three key support levels are: S1 – 27.9032, S2 – 27.8774, S3 – 27.8546.