Today’s ZEW Survey is expected to move the Euro. Economists expect a worsening in the current situation sub-component, but an improvement in the economic expectations sub-component. The Eurozone economic expectations sub-component is also anticipated to show an improvement, but all three are set to remain deep in negative territory. How will forex traders react to this economic data point? Bullishness has increased in the Euro after Mario Draghi’s press conference, but is this just a small bounce in a bigger down-trend or can the EURAUD enter a rally? Today’s fundamental analysis will take a look at the upside potential and weight the downside risk.

Australian data released during the Asian morning trading session showed a decrease in consumer confidence, but house prices fell less than expected in the second-quarter. Minutes released from the latest RBA meeting were in focus which kept an October interest rates cut on the table, the markets have priced in a 25 basis interest rate cut for November as well as January. Will this pressure the Australian Dollar further to the downside and advance the EURAUD from current levels above its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis now and grow your balance trade-by-trade!