Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Melbourne Institute Inflation Index for August increased 0.2% monthly. Forex traders can compare this to the Australian Melbourne Institute Inflation Index for July, which rose 0.8% monthly.
Australian ANZ Job Advertisements for August rose 1.9% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for July, which increased 0.7% monthly.
Australian Business Inventories for the second quarter dropped by 1.9% quarterly, and Australian Company Gross Operating Profits plunged by 13.1% quarterly. Economists predicted a rise of 0.4% and a contraction of 1.9%. Forex traders can compare this to Australian Inventories for the first quarter, which rose 1.2% quarterly, and Australian Company Operating Profits, which increased 1.3% quarterly. Company Pre-Tax Profits for the second quarter collapsed 14.6% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the first quarter, which dropped 7.5% quarterly.
The German Trade Balance for July came in at €15.9B. Economists predicted a figure of €18.0B. Forex traders can compare this to the German Trade Balance for June, reported at €18.7B. Exports for July decreased by 0.9% monthly, and Imports expanded by 1.4% monthly. Economists predicted a drop of 1.5% and a rise of 0.5%. Forex traders can compare this to Exports for June, which rose by 0.2% monthly, and Imports, which decreased by 3.2% monthly.
The Spanish Unemployment Change for August is predicted at -21.3K. Forex traders can compare this to the Spanish Unemployment Change for July, reported at -11.0K.
Eurozone Sentix Investor Confidence for September is predicted at -19.6. Forex traders can compare this to Eurozone Sentix Investor Confidence for August, reported at -18.9.
The forecast for the EUR/AUD turned cautiously bullish after this currency pair corrected from its multi-year high above 1.7060 for a 500 pips drop. Short-term downside pressure remains with the descending Tenkan-sen approaching the flat Kijun-sen, and a false bearish crossover could precede the next leg up. The upward-shifting Ichimoku Kinko Hyo Cloud provides longer-term bullish momentum and may serve as a platform for more gains. Traders should also monitor the CCI in extreme oversold territory. This technical indicator shows signs of flattening out as bearish momentum fades, and a breakout above -100 may trigger a reversal of the current sell-off. Can bulls wrestle control from bears and push the EUR/AUD into its horizontal resistance area and fresh multi-year highs not seen since 2020? 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 1.6590 to 1.6715 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6655
- Take Profit Zone: 1.6960 – 1.7065
- Stop Loss Level: 1.6520
Should price action for the EUR/AUD breakdown below 1.6590, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6520
- Take Profit Zone: 1.6300 – 1.6410
- Stop Loss Level: 1.6590
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