EUR/AUD – Technical Analysis for Australia Binary Options
Australia – House Price Index
On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI). It measures the changes in the selling price of houses in the 8 state capitals in Australia.
Rising house prices indicate that investors are confident about purchasing houses. Hence, High Low binary 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 decreased by -1.5%. The forecast for this month was set to decrease by -1.9%. However, the actual figure came out much worse than expected, at -2.4%.
Eurozone – German ZEW Economic Sentiment
On Tuesday, at GMT 10:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) released its German economic sentiment index. It measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts.
Since the professional investment community, investors, and analysts have the latest data; their reflection about the economy tends to be the most accurate. Therefore, Australian binary options investors consider the ZEW’s German economic sentiment index to be a leading indicator of the entire Eurozone economy. This is because the German economy is one the most important driving forces behind the Euro currency.
Last month, the ZEW German economic sentiment came out at -13.4. This month, analysts were expecting it to come out at -11.0. However, the actual figure came out much better than expected, at -3.6.
EUR/AUD Forecast
The EUR/AUD remained bullish since forming a small bullish outside bar (BUOB) on December 3, 2018. Over the last several months, it formed a well-respected uptrend line and climbed up by around 1,200 pips. On Monday, the EUR/AUD tested the uptrend line and formed bullish pin bar on the support level around 1.5935. Currently, it is approaching the resistance near the 1.6050 level.
The Australian House Price Index fell by more than expected. On the other hand, the German ZEW Economic Sentiment came out much better than expected. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EUR/AUD closes above the resistance near 1.6050, it would likely attract additional bullish momentum in the market.
Hence, HighLow binary options traders should look out for trading opportunities above this major resistance level around 1.6050.
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