EURAUD Forecast & Technical Analysis
Eurozone – Producer Price Index
On Tuesday, at GMT 9:00 a.m., the Eurostat released the Producer Price Index (PPI). It measures the changes in the price of sold goods by the Eurozone manufacturers in the previous month.
Manufacturers increase their prices when the cost of production goes up. Hence, HighLow investors consider the German PPI to be a leading indicator of the overall German consumer inflation. Also, its consumer inflation situation can have a substantial impact on the valuation of the Euro.
Last month, the Eurozone PPI went down by -0.6%. This month, the forecast was set at a 0.3% increase. However, the actual figure went up by only 0.2%.
Australia – Retail Sales
On Tuesday, at GMT 1:30 a.m., the Australian Bureau of Statistics released the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.
Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. When consumers are confident about their future financial situation, they tend to spend more.
Last month, Australian retail sales value increased by 0.4%. Analysts were expecting it to grow by 0.2% this month. However, it decreased by -0.1%.
The EURAUD formed a large bearish pin bar on August 7, 2019. Since then, it has fallen by around 540 pips. However, after reaching the 1.6230 level, it found a strong support. The 1.6230 level has acted as a pivot zone over the last few months. Currently, the EUR/AUD is testing the support near 1.6230 once again.
The Australian retail sales decreased by -0.01% over the last month. On the other hand, the Eurozone Producer Price Index went up by 0.2%. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EURAUD remains above the support near 1.6230, it would likely attract additional bullish momentum in the market.
Hence, High Low binary options traders should look out for trading opportunities above this major support level around 1.6230.
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