EURAUD Bearishness May Push Price Towards Uptrend Line

EURAUD – Binary Options Technical Analysis

Australia – House Price Index

Tomorrow, at GMT 2:30 a.m., the Australian Bureau of Statistics will release the House Price Index (HPI), which measures the changes in the selling price of houses in the 8 state capitals in Australia.

Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, it can binary options traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals have decreased by -0.2% and the forecast for this month is set at an additional increase of 3.1%.

Eurozone – German Flash Manufacturing PMI

Later, on Friday, at GMT 8:30 a.m., the Markit will release the German Flash Manufacturing PMI data, which measures the level of a diffusion index based on surveying around 500 purchasing managers in the country.

Binary options investors consider the Flash Manufacturing PMI figure to be a leading indicator of the German economic climate as purchasing managers usually has the insight regarding business conditions such as employment, production capacity and new bulk orders and inventory situation.

Last month, the German Flash Manufacturing PMI figure came out at 51.7 and the forecast for this month is currently set at 51.5.

Trade Recommendation for the EURAUD

EURAUD - Technical Analysis for Binary Options and Forex

Since forming a bullish pin bar on August 10, the EUR/AUD has climbed up around 560 pips. However, last week, after forming a Bearish Outside Bar (BEOB), the pair started a retracement move towards the uptrend line. So far, the price has penetrated below the important psychological support level around 1.4890, and approaching the consolidation zone near the 1.4800 level.

As both the EU data, the German flash manufacturing PMI is expected to come out near its previous figures and Australian HPI is expected to increase, the fundamental outlook would likely remain bearish for the pair.

Given the EURAUD price is approaching a strong consolidation zone, we believe the price will remain most range bound this week, once it penetrates below 1.4800 level. Hence, taking a bearish approach till the price reaches near the uptrend line may produce a good opportunity to trade.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the EURAUD with their Australian binary options brokers as soon as the price and closes below the 1.4800 level on the daily timeframe.

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