Today is the start of the key, two day EU summit where the UK and EU will try to agree on a Brexit deal. The Euro has recovered from its lows, but economic data continues to disappoint. Today’s Eurozone construction output is expected to show a monthly contraction. The EURAUD rallied as the Australian Dollar came under pressure after markets grew increasingly disappointed over the partial trade deal announced between the US and China. How will today’s information flow impact price action? Today’s fundamental analysis will take a look at price action in both directions.
The Australian economy added almost 15K jobs in September and the unemployment rate decreased to 5.2%. Forex traders remain anxious to get more details about the partial US-China trade deal which US President Trump hails as a great success without confirmation from the Chinese side. The EURAUD started to retreat from resistance, will bears force more downside or can bulls recover? 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:
- Italian Trade Balance: The Italian Trade Balance for August is predicted at a €6.210B. Forex traders can compare this to Italian Trade Balance for July which was reported at €7.631B.
- Eurozone Construction Output: Eurozone Construction Output for August is predicted to decrease by 0.1% monthly and to increase by 0.8% annualized. Forex traders can compare this to Eurozone Construction Output for July which decreased by 0.7% monthly and which increased by 1.1% annualized.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Employment Report: The Australian Employment Change for September was reported at 14.7K. Economists predicted a figure of 15.0K. Forex traders can compare this to the Australian Employment Change for August which was reported at 37.9K. The Unemployment Rate for September was reported at 5.2%. Economists predicted a reading of 5.3%. Forex traders can compare this to the Unemployment Rate for August which was reported at 5.3%. 26.2K Full-Time Positions were created and 11.4K Part-Time Positions were lost in August. Forex traders can compare this to the loss of 13.2K Full-Time Positions and the creation of 51.1K Part-Time Positions which were reported in August. The Labor Force Participation Rate for September was reported at 66.1%. Economists predicted a reading of 66.2%. Forex traders can compare this to the Labor Force Participation Rate for August which was reported at 66.2%.
- RBA FX Transactions: RBA FX Transactions for September were reported at A$602M. Forex traders can compare this to RBA FX Transactions for August which were reported at A$608M. RBA FX Government Transactions for September were reported at -A$658M and RBA FX Other Transactions were reported at -A$703M. Forex traders can compare this to RBA FX Government Transactions for August which were reported at -A$750 and to RBA FX Other Transactions which were reported at A$531M.
Should price action for the EURAUD remain inside the or breakdown below the 1.6300 to 1.6400 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6330
- Take Profit Zone: 1.6015 – 1.6075
- Stop Loss Level: 1.6430
Should price action for the EURAUD breakout above 1.6400 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6430
- Take Profit Zone: 1.6545 – 1.6620
- Stop Loss Level: 1.6400
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