EURAUD Forecast & Technical Analysis
Australia – Building Approvals
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.
A build permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, HighLow investors 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 decreased by 7.9%. This month, analysts were expecting it to increase by 2.1%. However, the actual figure came out way better, at 11.8%.
Eurozone – Unemployment Rate
On Thursday, at GMT 10:00 a.m., the Eurostat will release the unemployment claims figure of Eurozone. It measures the changes in the number of people who claimed for unemployment insurance over the last month.
Binary options traders consider the unemployment claims data to be one of the most important fundamental indicators of the Eurozone job market. This is primarily because unemployment and consumer spending have direct correlation. Also, an increasing number of unemployment claims indicate lower consumer spending in the economy. Because it makes up the bulk of the economic activity in the Eurozone.
Last month, the Eurozone unemployment rate came out at 7.5%. Analysts are expecting it to remain at 7.5% this month.
EURAUD Forecast
The EURAUD remained range bound since September 2019. During this time, it mostly ranged between the support near 1.6000 and the resistance around 1.6370. Over the last week, it bounced from the lower end of the range to 1.6230.
After the news regarding better-than-expected building approval figures in Australia, price of EUR/AUD fell sharply on Wednesday. Currently, it is trading below the pivot zone near 1.6230. On the other hand, the Eurozone unemployment rate will likely to stay at 7.5%. We believe it would set a bearish fundamental outlook for the EURAUD this week. Therefore, if the EUR/AUD remains below the resistance near 1.6230, it would likely attract additional bearish momentum in the market.
Hence, Australian High Low traders should look out for trading opportunities below this major resistance level around 1.6230.
- BTCUSD: Weekly Technical Analysis - September 30, 2022
- BTCUSD: Bulls to Dominate the Zone for the Price to Rise is Expected - September 16, 2022
- BTCUSD: Price of Bitcoin Bounce Expected - September 2, 2022
