Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for June came in at A$5,589M. Economists predicted a figure of A$5.080M. Forex traders can compare this to the Australian Trade Balance for May, reported at A$5,052M. Exports for June rose by 1.7% monthly, and imports increased by 0.5% monthly. Forex traders can compare this to exports for May, which grew by 1.3% monthly, and imports, which increased by 3.3% monthly.
The Australian Import Price Index for the second quarter increased 1.0% quarterly, and the Australian Export Price Index plunged 5.9% quarterly. Forex traders can compare this to the Australian Import Price Index for the first quarter, which decreased 1.8% quarterly, and the Australian Export Price Index, which contracted 2.1% quarterly.
The Chinese Caixin Manufacturing PMI for July came in at 49.8. Economists predicted a figure of 51.4. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for June, reported at 51.8.
Australian Commodity Prices for July decreased by 3.0% annualized. Forex traders can compare this to Australian Commodity Prices for June, which dropped 4.1%.
The Spanish HCOB Manufacturing PMI for July is predicted at 52.5. Forex traders can compare this to the Spanish HCOB Manufacturing PMI for June, reported at 52.3.
The Italian HCOB Manufacturing PMI for July is predicted at 46.0. Forex traders can compare this to the Italian Manufacturing PMI for May, reported at 45.7.
The Final French HCOB Manufacturing PMI for July is predicted at 44.1. Forex traders can compare this to the French Manufacturing PMI for June, reported at 45.4.
The Final German HCOB Manufacturing PMI for July is predicted at 42.6. Forex traders can compare this to the German Manufacturing PMI for June, reported at 43.5.
The Final Eurozone HCOB Manufacturing PMI for July is predicted at 45.6. Forex traders can compare this to the Eurozone Manufacturing PMI for June, reported at 45.8.
The Eurozone Unemployment Rate for June is predicted at 6.4%. Forex traders can compare this to the Eurozone Unemployment Rate for May, reported at 6.4%.
The forecast for the EUR/AUD turned bearish after this currency pair advanced into its horizontal resistance area. The Tenkan-sen and the Kijun-sen move higher but show signs of exhaustion. The Ichimoku Kinko Hyo Cloud narrowed with the Senkou Span A ascending and the Senkou Span B flat. A false bullish crossover may precede the expected sell-off. Traders should also monitor the CCI after it has completed a breakdown from extreme overbought territory. This technical indicator has plenty of downside potential to drag this currency pair lower. Can bears gain complete control over the EUR/AUD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/AUD remain inside the or breakdown below the 1.6525 to 1.6600 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6565
- Take Profit Zone: 1.6265 – 1.6340
- Stop Loss Level: 1.6650
Should price action for the EUR/AUD break out above 1.6600, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6650
- Take Profit Zone: 1.6740 – 1.6800
- Stop Loss Level: 1.6600
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