Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian NAB Business Conditions for August were reported at -6 and Australian NAB Business Confidence at -8. Forex traders can compare this to NAB Business Conditions for July, reported at 0, and to Australian NAB Business Confidence, reported at -14.
French non-arm payrolls for the second quarter decreased by 0.9% quarterly. Economists predicted a decrease of 0.6%. Forex traders can compare this to French non-arm payrolls for the first quarter, which decreased by 2.0% quarterly.
The German Trade Balance for July was reported at €18.0B. Economists predicted a figure of €16.0B. Forex traders can compare this to German Trade Balance for June, reported at €14.5B. Exports for July increased by 4.7% monthly, and Imports increased by 1.1% monthly. Economists predicted an increase of 5.0% and 3.3%. Forex traders can compare this to Exports for June, which increased by 14.9% monthly, and to Imports, which increased by 7.0% monthly.
The Eurozone Employment Change for the second quarter is predicted to decrease by 2.8% quarterly and 2.9% annualized. Forex traders can compare this to the Eurozone Employment Change for the first quarter, which decreased by 0.2% quarterly, and which increased by 0.4% annualized. The advanced Eurozone GDP for the second quarter is predicted to decrease by 12.1% quarterly and by 15.0% annualized. Forex traders can compare this to the Eurozone GDP for the first quarter, which decreased by 3.6% quarterly and by 3.1% annualized.
The forecast for the EUR/AUD remains bearish after this currency pair moved below its Ichimoku Kinko Hyo Cloud. Australian business confidence remains negative, and global trade is depressed amid the ongoing Covid-19 pandemic. Mixed economic data out of the Eurozone reduces the downside potential for price action, but the short-term trend indicates more downside. Will bears have enough strength to extend the sell-off into its next horizontal support level? 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 1.6180 to 1.6250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6215
- Take Profit Zone: 1.5905 – 1.5975
- Stop Loss Level: 1.6330
Should price action for the EUR/AUD breakout above 1.6250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6330
- Take Profit Zone: 1.6455 – 1.6520
- Stop Loss Level: 1.6250
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