EUR/AUD Resumes Downtrend As Australian Economic Indicators Gain Positive Momentum

Australia – MI Leading Index

On Tuesday, at GMT 11:30 a.m., the Melbourne Institute released the month-over-month MI Leading Index figure. It measures the level of a composite index based on 9 economic indicators.

The MI Leading Index predicts the direction of the economy. That’s why institutional investors pay attention to this index. Also, key policymakers in Australia follow the index. Because it is derived from a combination of a total of nine economic indicators. Hence, it is considered by binary options traders as a leading indicator of the Australian economy.

Last month, the MI Leading Index increased by 0.1%. This month, it grew by 0.3%.

Eurozone – German Flash Manufacturing PMI

On Friday, at GMT 8:30 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 57.1. This month, analysts are expecting it to come out at 56.6.

EUR/AUD Forecast

Since October 20, 2020, the EUR/AUD remained bearish and formed a downtrend line. Over the last few months, it broke below the key supports near 1.6200 and 1.5600. After closing below 1.5600 on February 15, 2021, it tested this pivot zone. So far, it appears that bears are in control. Currently, the EUR/AUD is trading just below the pivot zone around 1.5600.

The Australian MI Leading Index increased by 0.3%. By contrast, analysts are expecting the German Flash Manufacturing PMI to go down from 57.1 to 56.6. We believe it would set a bearish fundamental outlook for the EUR/AUD. Therefore, if the EUR/AUD remains below the pivot zone near 1.5600, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major resistance level around 1.5600.

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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