EURAUD Forecast & Technical Analysis for binary options
Australia – CB Leading Index
On Tuesday, at GMT 2:30 p.m., the Conference Board Inc released the month-over-month leading index for Australia. It measures the changes in the level of a composite index based on seven other major fundamental indicators.
The CB leading index aggregates some of the other indicator data. Australian Binary options brokers consider this to be an important representation of the overall Australian economy. However, most of these data are previously released. So, the CB leading index tends to have a minimized immediate market impact.
Last month, the CB leading index came out at -0.1%. This month, it increased by 0.4%.
Eurozone – German Flash Manufacturing PMI
Later in the week, on Friday, at GMT 7:30 a.m., the Markit will release the German Flash Manufacturing PMI data. It measures the level of a diffusion index based on surveying around 500 purchasing managers in the country.
Binary options investors consider the Flash Manufacturing PMI figure to be a leading indicator of the German economic climate. Because purchasing managers usually have insight regarding business conditions. Such as employment, production capacity, and new bulk orders and inventory situation.
Last month, the German Flash Manufacturing PMI figure came out at 55.6. Analysts are expecting it to come out slightly lower, at 55.3.
EURAUD Forecast
Since March 19, 2020, the EUR/AUD has remained in a downtrend. Over the last few months, the pair fell by around 3750 pips. However, after reaching near the 1.6050 level in June, it found strong support. Over the last two months, the EURAUD remained range bound and mostly traded between 1.6050 and 1.6590. Currently, it is trading just below this resistance level.
The Australian CB Leading Index came out positive at 0.4%. By contrast, analysts are expecting the German Flash Manufacturing PMI to come out close to last month’s reading. The Australian composite index gained 0.5% over the last month. But, the importance of German manufacturing PMI is much greater for the valuation of the EUR/AUD. Moreover, there is a bullish divergence on the daily chart. We believe it would set a bullish fundamental outlook for the EURAUD this week. Therefore, if the EUR/AUD closes above the resistance near 1.6590, 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 1.6590.
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