Source: PaxForex Premium Analytics Portal, Fundamental Insight

Australian Westpac Consumer Confidence for September increased 2.0% monthly to 106.2. Forex traders can compare this to Australian Westpac Consumer Confidence for August, which decreased 4.4% monthly to 104.1.

The Preliminary French CPI for August increased 0.6% monthly and 1.9% annualized. Economists predicted an increase of 0.6% and 1.9%. Forex traders can compare this to the French CPI for July, which increased 0.1% monthly and 1.2% annualized. The French Harmonized CPI for August increased 0.7% monthly and 2.4% annualized. Economists predicted an increase of 0.7% and 2.4%. Forex traders can compare this to the French Harmonized CPI for July, which increased 0.1% monthly and 1.5% annualized.n

The Preliminary Italian CPI for August is predicted to increase 0.5% monthly and 2.1% annualized. Forex traders can compare this to the Italian CPI for July, which increased 0.5% monthly and 1.9% annualized. The Preliminary Italian Harmonized Italian CPI for August is predicted to increase 0.3% monthly and 2.6% annualized. Forex traders can compare this to the Italian Harmonized Italian CPI for July, which decreased 1.0% monthly and increased 1.0% annualized.

Eurozone Industrial Production for July is predicted to increase 0.6% monthly and 6.3% annualized. Forex traders can compare this to Eurozone Industrial Production for June, which decreased 0.3% monthly and increased 9.7% annualized.

The forecast for the EUR/AUD turned bearish after the flat Kijun-sen rejected this currency pair. It climbed above its Ichimoku Kinko Hyo Cloud, which adopted a bearish bias with the Senkou Span A descending. While the Kijun-sen started to drift higher, a reversal is likely amid growing selling pressures. The CCI is advancing into extreme overbought territory, and traders should wait for a cross above 100 and enter short positions following a retreat. Can bears reignite a sell-off in the EUR/AUD, forcing it into its horizontal support 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 breakdown below the 1.6110 to 1.6220 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.6140
• Take Profit Zone: 1.5615 – 1.5725
• Stop Loss Level: 1.6275

Should price action for the EUR/AUD breakout above 1.6220, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.6275
• Take Profit Zone: 1.6355 – 1.6435
• Stop Loss Level: 1.6220

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