Forex traders will start the new trading week with PMI data across the Eurozone, any downward revisions to previous October reading are likely to pressure the Euro lower. The Eurozone Sentix Investor Confidence is also anticipated to have an impact on price action. With a new ECB President, will there be changes to monetary policy or will it remain the same Draghi ECB under a new proxy? Will bulls power ahead and rally the EURAUD or will bears force more downside? Today’s fundamental analysis will take a look at price action in both directions.
Australian retail sales posted a smaller monthly increase in October and an unexpected quarterly contraction excluding inflation. Job advertisements also decreased, but the Australian Dollar extended its advance against the Euro as a potential ASEAN trade pact has boosted economic confidence. How will the EURAUD be impacted by this development? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Euro trades:
- Spanish Markit Manufacturing PMI: The Spanish Markit Manufacturing PMI for October is predicted at 47.5. Forex traders can compare this to the Spanish Markit Manufacturing PMI for September which was reported at 47.7.
- Italian Markit/ADACI Manufacturing PMI: The Italian Markit/ADACI Manufacturing PMI for October is predicted at 47.7. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for September which was reported at 47.8.
- French Markit Manufacturing PMI: The Final French Markit Manufacturing PMI for October is predicted at 50.5. Forex traders can compare this to the previous French Markit Manufacturing PMI for October which was reported at 50.5.
- German Markit/BME Manufacturing PMI: The Final German Markit/BME Manufacturing PMI for October is predicted at 41.9. Forex traders can compare this to the previous German Markit/BME Manufacturing PMI for October which was reported at 41.9.
- Eurozone Markit Manufacturing PMI: The Final Eurozone Markit Manufacturing PMI PMI for October is predicted at 45.7. Forex traders can compare this to the previous Eurozone Markit Manufacturing PMI for October which was reported at 45.7.
- Eurozone Sentix Investor Confidence: Eurozone Sentix Investor Confidence for November is predicted at -13.8. Forex traders can compare this to Eurozone Sentix Investor Confidence for October which was reported at -16.8.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian TD Securities Inflation: Australian TD Securities Inflation for October increased by 0.1% monthly and by 1.4% annualized. Forex traders can compare this to Australian TD Securities Inflation for September which increased by 0.1% monthly and by 1.5% annualized.
- Australian Retail Sales: Australian Retail Sales for September increased by 0.2% monthly. Economists predicted an increase of 0.4% monthly. Forex traders can compare this to Australian Retail Sales for August which increased by 0.4% monthly. Australian Retail Sales excluding Inflation for the third-quarter decreased by 0.1% quarterly. Economists predicted an increase of 0.3% quarterly. Forex traders can compare this to Australian Retail Sales excluding Inflation for the second-quarter which increased by 0.2% quarterly.
- Australian ANZ Job Advertisements: Australian ANZ Job Advertisements for October decreased by 1.0% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for September which increased by 0.3% monthly.
Should price action for the EURAUD remain inside the or breakout above the 1.6115 to 1.6200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6135
- Take Profit Zone: 1.6365 – 1.6430
- Stop Loss Level: 1.6075
Should price action for the EURAUD breakdown below 1.6115 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6075
- Take Profit Zone: 1.5890 – 1.5945
- Stop Loss Level: 1.6115
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