EURAUD Forecast & Technical Analysis for binary options
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 workforce which remained unemployed over the past month.
Binary options brokers 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 remain unchanged at 8.3%.
Eurozone – German Preliminary GDP
On Friday, at GMT 6:00 a.m., the Destatis will release the quarter-over-quarter German Preliminary GDP figure. It measures the changes in the value of all products and services produced by the Germany economy. However, this figure is adjusted for inflation in order to provide more accurate data.
Binary options traders consider the German GDP to be one of the most vital fundamental indicators of measure the production in the Eurozone economy. Because the German economy makes up a large part of the entire Eurozone economic activities.
Last quarter, the German preliminary GDP remained neutral at 0.0%. The forecast for this quarter is set at a decrease of -2.3%.
On April 30, 2020, the EURAUD formed a Bullish Outside Bar (BUOB). It also broke above the downtrend line in the process. However, after reaching the resistance near 1.7120, it swiftly resumed the downtrend. Over the last few days, the EURAUD went down to test the support near 1.6600 and closed below it. Earlier today, it tested the 1.6600 level but so far, failed to break above it. Currently, it is testing the 1.6530 level, which is the low from April 30.
The Australian unemployment rate will likely go up to 8.3%. But, due to the Coronavirus situation, market has probably priced it in by now. On the other hand, analysts are expecting the German Prelim GDP to go down by -2.3%. We believe it would set a bearish fundamental outlook for the EURAUD this week. Therefore, if the EUR/AUD closes below the support near 1.6530, it would likely attract additional bearish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities below this major support level around 1.6530.
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