Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Australian Judo Bank Manufacturing PMI for December came in at 50.2. Economists predicted a figure of 53.9. Forex traders can compare this to the Australian Judo Bank Manufacturing PMI for November, reported at 51.3.
Australian Commodity Prices for December surged 15.6% annualized. Forex traders can compare this to Australian Commodity Prices for November, which sky-rocketed by 19.1.
The Chinese Caixin Manufacturing PMI for December came in at 49.0. Economists predicted a figure of 48.8. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for November, reported at 49.4.
The German Unemployment Change for December is predicted at 15.0K, and the German Unemployment Rate at 5.6%. Forex traders can compare this to the German Unemployment Change for November, reported at 17.0K, and the German Unemployment Rate at 5.6%.
The Preliminary German CPI for December is predicted to decrease by 0.3% monthly and to surge by 9.1% annualized. Forex traders can compare this to the German CPI for November, which dropped by 0.5% monthly and sky-rocketed by 10.0% annualized. The EU Harmonized German CPI for December is predicted to contract by 0.5% monthly and surge by 10.7% annualized. Forex traders can compare this to the EU Harmonized German CPI for November, which was flat at 0.0% monthly and accelerated by 11.3% annualized.
Trading volume could gradually increase this week before the 2023 trading year kick-off in full swing on Monday. The economic calendar is light but offers CPI data from Germany, expected to show inflation cooling moderately from sky-high readings. It should confirm that central banks will tighten monetary policy further during the first quarter. The Reserve Bank of Australia has begun slowing its pace of hikes, but it has confirmed that it would do more. The European Central Bank has surprised with a more hawkish stance and positioned the Euro for gains against the Australian Dollar in 2023.
The forecast for the EUR/AUD remains bullish after this currency pair corrected into its ascending Ichimoku Kinko Hyo Cloud. Short-term volatility could increase with the Kijun-sen flat and the Tenkan-sen descending. Traders should monitor the CCI after it has dropped from extreme overbought territory into extreme oversold conditions. A sustained breakout above -100 could end the correction and pressure price action higher. Can bulls overpower bears and regain control of the EUR/AUD before pushing it into its horizontal resistance 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 breakout above the 1.5615 to 1.5765 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5690
- Take Profit Zone: 1.6170 – 1.6225
- Stop Loss Level: 1.5540
Should price action for the EUR/AUD breakdown below 1.5615, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.5540
- Take Profit Zone: 1.5380 – 1.5450
- Stop Loss Level: 1.5615
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