EURAUD – Binary Options Technical Analysis
Australia – Building Approvals
Tomorrow, at GMT 2:30 a.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.
Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.
Last month, the building approvals figure went down by -2.9% and the forecast for this month is currently set at an increase of 1.2%.
Eurozone – German Retail Sales
On Wednesday, at GMT 7:00 a.m., the Destatis will release the month over month German retail sales data, which measures the changes in the total value of sales at the retail level in the country.
Since the German economy makes up a large portion of the overall Eurozone economy, and the retail sales acts as a primary measurement of consumer spending and consumer confidence, binary options investors consider it to be an important fundamental indicator.
Last month, the German retail sales figure declined by 0.1% and the forecast for this month is that it will increase by 0.5%.
Trade Recommendation for the EURAUD
After breaking above the downtrend line on August 12, the EURAUD continued the retracement over the last few weeks and reached the resistance zone near 1.4890. Last Friday, the EUR/AUD formed a sizable bullish pin bar, which pushed the today’s price towards the 1.4890 level once again. However, the EUR/AUD failed to penetrate above this major resistance level and so far, has retraced around 75 pips.
As the Australian building permits figure is expected to increase, but the German retail sales figure is expected to increase as well. We believe the market would give more weight to the German data, as it is directly related to the consumer spending. Hence, the fundamental outlook for the EURAUD would likely to remain bullish. However, unless the price breaks above the 1.4890 level, the probability of any further bullish move would remain low.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the EURAUD with their Australian binary options brokers as soon as the price and closes above the 1.4890 level.
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