Forex traders will get a heavy dose of PMI data out of the Eurozone which is likely to dictate trading in the Euro for the trading day. Economists predict a minor slowdown in July across the board with the German Manufacturing PMI in focus. The tariff threat by US President Trump on the Eurozone auto sector still looms, but bullish momentum in the EURAUD is building as this currency pair is ripe for a short-covering rally. How will this morning’s data impact price action? Follow the PaxForex Daily Fundamental Analysis where you can grow your balance trade-by-trade!

Here are the key factors to keep in mind today for Euro trades:

• French Business Survey: The French Business Survey for July is predicted at 102. Forex traders can compare this to the French Business Survey for June which was reported at 102.
• French Manufacturing PMI, Services PMI and Composite PMI: The Preliminary French Markit Manufacturing PMI for July is predicted at 51.6. Forex traders can compare this to the French Markit Manufacturing PMI for for June which was reported at 51.9. The Preliminary French Markit Services PMI for July is predicted at 52.8. Forex traders can compare this to the French Markit Services PMI for for June which was reported at 52.9. The Preliminary French Markit Composite PMI for July was reported at 52.5. Forex traders can compare this to the French Markit Composite PMI for for June which was reported at 52.7.
• German Manufacturing PMI, Services PMI and Composite PMI: The Preliminary German Markit Manufacturing PMI for July is predicted at 45.2. Forex traders can compare this to the German Markit Manufacturing PMI for for June which was reported at 45.0. The Preliminary German Markit Services PMI for July is predicted at 55.2. Forex traders can compare this to the German Markit Services PMI for for June which was reported at 55.8. The Preliminary German Markit Composite PMI for July is predicted at 52.3. Forex traders can compare this to the German Markit Composite PMI for for June which was reported at 52.6.
• Eurozone Manufacturing PMI, Services PMI and Composite PMI: The Preliminary Eurozone Markit Manufacturing PMI for July is predicted at 47.6. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for for June which was reported at 47.6. The Preliminary Eurozone Markit Services PMI for July is predicted at 53.3. Forex traders can compare this to the Eurozone Markit Services PMI for for June which was reported at 53.6. The Preliminary Eurozone Markit Composite PMI for July is predicted at 52.1. Forex traders can compare this to the Eurozone Markit Composite PMI for for June which was reported at 52.2.
• Eurozone Money Supply M3: Eurozone Money Supply M3 for June is predicted to increase by 4.6% annualized. Forex traders can compare this to Eurozone Money Supply M3 for May which increased by 4.8% annualized.

Australian PMI data for July showed a continuation of the economic slowdown as all three gauges decreased and came closer to the 50.0 mark which separates expansion from contraction. The Australian Dollar came under pressures which lifted the EURAUD off of strong support levels. Will this turn into a bigger price action reversal? Today’s fundamental analysis will take a look at the upside potential in this currency pair and evaluate the downside risk.

Here are the key factors to keep in mind today for Australian Dollar trades:

• Australian CBA Manufacturing PMI, CBA Services PMI and CBA Composite PMI: The Preliminary Australian Manufacturing PMI for July was reported at 51.4. Forex traders can compare this to the Australian CBA Manufacturing PMI for June which was reported at 52.0.The Preliminary Australian CBA Services PMI for July was reported at 51.9. Forex traders can compare this to the Australian CBA Services PMI for June which was reported at 52.6. The Preliminary Australian CBA Composite PMI for July was reported at 51.8. Forex traders can compare this to the Australian CBA Composite PMI for for June which was reported at 52.5.
• Australian Skilled Vacancies: Australian Skilled Vacancies for June decreased by 0.6% monthly. Forex traders can compare this to Australian Skilled Vacancies for May which decreased by 1.1% monthly.

Should price action for the EURAUD remain inside the or breakout above the 1.5920 to 1.6010 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.5965
• Take Profit Zone: 1.6260 – 1.6360
• Stop Loss Level: 1.5895

Should price action for the EURAUD breakdown below 1.5920 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.5895
• Take Profit Zone: 1.5680 – 1.5735
• Stop Loss Level: 1.5965

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