EURAUD Forecast & Technical Analysis
Australia – Unemployment Rate
On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.
HighLow investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast the inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.2%. This month, analysts are expecting it to go up at bit to at 5.1%.
Eurozone – German Preliminary Consumer Price Index (CPI)
On Thursday at 6:00 a.m., the Destatis will release the month-over-month German Preliminary CPI. It measures the change in the price of goods and services bought by German consumers over the past month.
The German central bank primarily uses the CPI to measure inflation. The CPI has a profound impact on the German economy. Moreover, the German economy makes up a large portion of the overall Eurozone economic activity. The German CPI also influences the valuation of the Euro against other major currencies. Hence, binary options traders consider the German Preliminary CPI to be a leading indicator of the Euro.
Last month, the last German preliminary CPI (m/m) indicated that there was a 0.2% increase in price. The forecast for this month says the inflation would increase by 0.2% as well.
The EURAUD formed a small bullish bar on April 17. Since then, it remained highly bullish. Over the last month, the pair has climbed up by around 570 pips. It also formed a well-respected uptrend line. Last week, the EUR/AUD tested the uptrend line. But, failed to break below it. Consequently, it resumed the uptrend. Currently, it is approaching the resistance near the 1.6250.
The Australian unemployment rate may go down to 5.1%. However, analysts are expecting the German CPI to grow by 0.2% over the last month. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EURAUD closes above the resistance near 1.6250, it would likely attract additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.6250
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