Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian TD Securities Inflation for December increased by 0.5% monthly. Forex traders can compare this to Australian TD Securities Inflation for November, which increased by 0.3% monthly. Australian Final Retail Sales for November increased by 7.1% monthly. Economists predicted an increase of 7.0% monthly. Forex traders can compare this to Australian Retail Sales for October, which increased by 1.4% monthly.
Spanish Industrial Production for November is predicted to decrease by 2.6% annualized. Forex traders can compare this to Spanish Industrial Production for October, which decreased by 1.6% annualized. Eurozone Sentix Investor Confidence for January is predicted at 0.7. Forex traders can compare this to Eurozone Sentix Investor Confidence for December, reported at -2.7.
The forecast for the EUR/AUD remains bullish, driven by weakness in the Australian Dollar. Since the relationship between Australia and China soured, the commodity-rich country feels downside pressure from Chinese tariffs. There is no quick resolution, which adds to bullish pressures in price action. The Tenkan-sen and Kijun-sen both descend, but the Ichimoku Kinko Hyo Cloud started a sideways trend, suggesting a pause in the sell-off. The CCI moved out of extreme oversold territory and has plenty of momentum for more upside. Can bulls pressure the EUR/AUD into its next 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 1.5780 to 1.5865 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5815
- Take Profit Zone: 1.6170 – 1.6255
- Stop Loss Level: 1.5715
Should price action for the EUR/AUD breakdown below 1.5780 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.5715
- Take Profit Zone: 1.5520 – 1.5615
- Stop Loss Level: 1.5780
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