Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Construction Work Done for the second quarter rose by 0.1% quarterly. Economists predicted an increase of 0.8%. Forex traders can compare this to Australian Construction Work Done for the first quarter, which contracted by 2.0% quarterly.
The Australian Monthly CPI Indicator for July increased by 3.5% annualized. Economists predicted a rise of 3.4%. Forex traders can compare this to the Australian Monthly CPI Indicator for June, which surged 3.8% annualized.
The German GfK Consumer Confidence Survey for September is predicted at -18.1. Forex traders can compare this to the German GfK Consumer Confidence Survey for August, reported at -18.4.
French Consumer Confidence for August is predicted at 92. Forex traders can compare this to French Consumer Confidence for July, reported at 91.
Eurozone Money Supply M3 for July is predicted to expand by 2.7% annualized, and Private Sector Loans are expected to rise by 0.5% annualized. Forex traders can compare this to Eurozone Money Supply M3 for June, which rose 2.2% annualized, and Private Sector Loans by 0.3% annualized.
The forecast for the EUR/AUD remains bearish after this currency pair broke down below its horizontal support area, turning it into resistance. Short-term volatility could increase after the descending Tenkan-sen has completed a bearish crossover below the upward-drifting Kijun-sen. Adding to downside pressure is the descending Senkou Span A of the Ichimoku Kinko Hyo Cloud, which closes in on the flat Senkou Span B, narrowing the Ichimoku Kinko Hyo Cloud. A bearish crossover could spark the next leg lower. Traders should also monitor the CCI in extreme oversold territory. This technical indicator could attempt a false breakout before resuming its downtrend. Can bears maintain 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 1.6400 to 1.6460 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6420
- Take Profit Zone: 1.6130 – 1.6200
- Stop Loss Level: 1.6510
Should price action for the EUR/AUD break out above 1.6460, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6510
- Take Profit Zone: 1.6600 – 1.6640
- Stop Loss Level: 1.6460
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