As global recession fears increase, forex traders pay even more attention to PMI data. Over the past month, manufacturing PMI’s across the globe have come in weaker than expected with a depressed outlook. During the European trading session, forex traders will get a look at final Eurozone services as well as composite PMI data for May. Any further downward revision could pressure the Euro to the downside. Some traders prefer investing in forex during fundamental news releases in order to capture pips from the short-term volatility which often accompanies announcement. Make sure to subscribe to the PaxForex Daily Fundamental Analysis in order to get the latest overview and outlook on currency pairs which are expected to see the biggest impact from fundamental events. The EURAUD is in a holding pattern at support, but how will this currency pair perform after the release of Eurozone economic data?

Here are the key factors to keep in mind today for Euro trades:

• Italian Services PMI and Composite PMI: The Italian Markit Services PMI for May is predicted at 49.8. Forex traders can compare this to the Italian Markit Services PMI for April which was reported at 50.4. The Italian Markit Composite PMI for May is predicted at 49.3. Forex traders can compare this to the Italian Markit Composite PMI for April which was reported at 49.5.
• French Services PMI and Composite PMI: The Final French Markit Services PMI for May is predicted at 51.7 Forex traders can compare this to the previous French Markit Services PMI for for May which was reported at 51.7. The Final French Markit Composite PMI for May is predicted at 51.3. Forex traders can compare this to the previous French Markit Composite PMI for for May which was reported at 51.3.
• German Services PMI and Composite PMI: The Final German Markit Services PMI for May is predicted at 55.0. Forex traders can compare this to the previous German Markit Services PMI for for May which was reported at 55.0. The Final German Markit/BME Composite PMI for May is predicted at 52.4. Forex traders can compare this to the previous German Markit/BME Composite PMI for for May which was reported at 52.4.
• Eurozone Services PMI and Composite PMI: The Final Eurozone Markit Services PMI for May is predicted at 52.5. Forex traders can compare this to the previous Eurozone Markit Services PMI for for May which was reported at 52.5. The Final Eurozone Markit Composite PMI for May is predicted at 51.6. Forex traders can compare this to the previous Eurozone Markit Composite PMI for for May which was reported at 51.6.
• Eurozone PPI: The Eurozone PPI for April is predicted to increase by 0.2% monthly by 3.1% annualized. Forex traders can compare this to the Eurozone PPI for March which decreased by 0.1% monthly and which increased by 2.9% annualized.
• Eurozone Retail Sales: Eurozone Retail Sales for April are predicted to decrease by 0.5% monthly and to increase by 1.5% annualized. Forex traders can compare this to Eurozone Retail Sales for March which were reported flat at 0.0% monthly and which increased by 1.9% annualized.

During the Asian trading session, forex traders received a heavy dose of Australian as well as Chinese economic data. Many forex trading strategies were caught off-guard. A dual report on the Australian services sector showed a conflicting reading while the final May composite PMI was revised lower. The first-quarter Australian GDP clicked in slightly below expectations, but the Australian Dollar held its ground. Chinese data showed a steeper than expected slowdown in its service sector while the overall composite PMI decreased slightly. How will price action be impacted through today’s trading session?

Here are the key factors to keep in mind today for Australian Dollar trades:

• Australian AiG Performance of Services Index: The Australian AiG Performance of Services Index for May was reported at 52.5. Forex traders can compare this to the Australian AiG Performance of Services Index for April which was reported at 46.5.
• Australian CBA Services PMI and CBA Composite PMI: The Final Australian CBA Services PMI for May was reported at 51.5. Forex traders can compare this to the previous Australian CBA Services PMI for May which was reported at 52.3. The Final Australian CBA Composite PMI for May was reported at 51.5. Forex traders can compare this to the previous Australian CBA Composite PMI for for May which was reported at 52.2.
• Australian GDP: The Australian GDP for the first-quarter increased by 0.4% quarterly and by 1.8% annualized. Economists predicted an increase of 0.5% quarterly and of 1.8% annualized. Forex traders can compare this to the Australian GDP for the fourth-quarter which increased by 0.2% quarterly and by 2.3% annualized.
• Chinese Caixin Services PMI and Chinese Caixin Composite PMI: The Chinese Caixin Services PMI for May was reported at 52.7. Economists predicted a figure of 54.2. Forex traders can compare this to the Chinese Caixin Services PMI for April which was reported at 54.5. The Chinese Caixin Composite PMI for May was reported at 51.5. Forex traders can compare this to the Chinese Caixin Composite PMI for for April which was reported at 52.7.

Should price action for the EURAUD remain inside the or breakdown below the 1.6065 to 1.6160 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.6100
• Take Profit Zone: 1.5900 – 1.5960
• Stop Loss Level: 1.6185

Should price action for the EURAUD breakout above 1.6160the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.6175
• Take Profit Zone: 1.5800 – 1.5895
• Stop Loss Level: 1.6100

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