Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Australian Manufacturing PMI for May came in at 55.3, the Preliminary Australian Services PMI at 53.0, and the Preliminary Australian Composite PMI at 52.5. Forex traders can compare this to the Australian Manufacturing PMI for April, reported at 58.8, the Australian Services PMI at 56.6, and the Australian Composite PMI at 55.9.
The French Business Survey for May came in at 107. Economists predicted a level of 96. Forex traders can compare this to the French Business Survey for April, reported at 108.
The Preliminary French Markit Manufacturing PMI for May is predicted at 55.0, the Preliminary French Markit Services PMI at 58.6, and the Preliminary French Markit Composite PMI at 57.0. Forex traders can compare this to the French Markit Manufacturing PMI for April, reported at 55.7, the French Markit Services PMI at 58.6, and the French Markit Composite PMI at 57.6.
The Preliminary German Markit Manufacturing PMI for May is predicted at 54.0, the Preliminary German Markit Services PMI at 57.2, and the Preliminary German Markit Composite PMI at 57.0. Forex traders can compare this to the German Markit Manufacturing PMI for April, reported at 54.6, the German Markit Services PMI at 57.6, and the German Markit Composite PMI at 54.3.
The Preliminary Eurozone Markit Manufacturing PMI for May is predicted at 54.9, the Preliminary Eurozone Markit Services PMI at 57.5, and the Preliminary Eurozone Markit Composite PMI at 55.3. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for April, reported at 55.5, the Eurozone Markit Services PMI at 57.7, and the Eurozone Markit Composite PMI at 55.8.
The forecast for the EUR/AUD remains bullish as the Euro resumes its recovery following a massive sell-off. Price action continues to move through its narrowing Ichimoku Kinko Hyo Cloud. It turned bullish after the Senkou Span A crossed above the Senkou Span B. Volatility may increase after the Kijun-sen, and the Tenkan-sen turned flat inside the Ichimoku Kinko Hyo Cloud, as the overall scenario remains bullish. Traders should monitor the CCI after it completed a breakdown from extreme overbought territory but recorded a higher lower and remained above the zero line. More upside is likely in this technical indicator. Can bulls keep the recovery in the EUR/AUD alive and push this currency pair 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 1.4995 to 1.5115 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5060
- Take Profit Zone: 1.5720 – 1.5810
- Stop Loss Level: 1.4870
Should price action for the EUR/AUD breakdown below 1.4995, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4870
- Take Profit Zone: 1.4500 – 1.4630
- Stop Loss Level: 1.4995
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