Forex trader eagerly await a fresh batch of PMI data out of the Eurozone. Economists expect a minor improvement for December, amid solid demand from the holiday shopping season. The EURAUD advanced this morning into the lower band of its horizontal resistance area, but how will price action react after the release of PMI data? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.

Australian PMI data showed that the contraction accelerated in December, but Chinese data came in promising. Industrial production data and retail sales point towards a strong December and offer signs of an economic recovery. Should Eurozone PMI data follow Australian data, the EURAUD is favored to enter a sell-off. Will bears get the data they need or can bulls push for more upside? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.