Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for August was reported at A$2,643M. Economists predicted a figure of A$5.154M. Forex traders can compare this to the Australian Trade Balance for July, reported at A$4,607M. Exports for August decreased by 4.0% monthly, and imports increased by 2.0%. Forex traders can compare this to exports for July, which decreased by 4.0% and, and to imports, which increased by 7.0%. Australian ANZ Job Advertisements for September increased by 7.8% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for August, which increased by 2.6% monthly. The Australian RBA left interest rates unchanged at 0.25%. Economists predicted no change in interest rates. Forex traders can compare this to the previous Australian RBA Interest Rate Decision, where interest rates were left unchanged at 0.25%.
German Factory Orders for August increased by 4.5% monthly. Economists predicted an increase of 2.6%. Forex traders can compare this to German Factory Orders for July, which increased by 3.3% monthly. ECB President Lagarde is scheduled to give two speeches today, which could add to short-term Euro-volatility. PMI data for September signaled a mixed economic performance, with a bulk of activity credited to inventory rebuilding as more lockdowns and restrictions are expected over the next few weeks.
The forecast for the EUR/AUD turned cautiously bearish following the recent run-up, which took price action above its thinning Ichimoku Kinko Hyo Cloud. It pushed this currency pair through its flatlining Kijun-sen and Tenkan-sen. The CCI retreated from extreme overbought conditions and is expected to record a lower high. With bullish pressures easing, will bears force a retreat into its horizontal support area amid growing Covid-19 infections across the Eurozone? 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 1.6420 to 1.6500 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6460
- Take Profit Zone: 1.6100 – 1.6170
- Stop Loss Level: 1.6520
Should price action for the EUR/AUD breakout above 1.6500 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6520
- Take Profit Zone: 1.6590 – 1.6620
- Stop Loss Level: 1.6500
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