Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian NAB Business Conditions for January were reported at 7, and Australian NAB Business Confidence at 10. Forex traders can compare this to NAB Business Conditions for December, reported at 14, and to Australian NAB Business Confidence, reported at 4.
The German Trade Balance for December is predicted at €15.9B. Forex traders can compare this to German Trade Balance for November, reported at €16.4B. Exports for December are predicted to decrease by 1.0% monthly and Imports by 1.1% monthly. Forex traders can compare this to Exports for November, which increased by 2.2% monthly, and to Imports, which increased by 4.7% monthly. Italian Industrial Production for December is predicted to increase by 0.3% monthly, and to decrease by 1.4% annualized. Forex traders can compare this to Italian Industrial Production for November, which decreased by 1.4% monthly and by 4.2% annualized.
The forecast for the EUR/AUD remains bearish as the chances for Australia to improve relations with China are greater than the Eurozone experiencing accelerated growth. German continues to struggle, and negative news concerning vaccines and Covid-19 mutations will keep restrictions in place. The descending Kijun-sen is on course to move below the flat Tenkan-sen, adding to selling pressure. The descending Ichimoku Kinko Hyo Cloud maintains the long-term bearish trading environment. After the CCI moved into extreme oversold territory, it has plenty of downside potential left. Will bears force the EUR/AUD closer to its next 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 1.5595 to 1.5680 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.5635
- Take Profit Zone: 1.5335 – 1.5465
- Stop Loss Level: 1.5720
Should price action for the EUR/AUD breakout above 1.5680 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5720
- Take Profit Zone: 1.5820 – 1.5895
- Stop Loss Level: 1.5680
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