EUR/AUD Bullishness Likely Continue as German ZEW Economic Sentiment Unexpectedly Rebounds

Eurozone – German ZEW Economic Sentiment

On Tuesday, at GMT 10:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) released its German economic sentiment index. It measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts.

Since the professional investment community, investors and analysts have the latest data; their reflection about the economy tends to be the most accurate. Therefore, binary options investors consider the ZEW’s German economic sentiment index to be a leading indicator of the entire Eurozone economy. This is because the German economy is one of the most important driving forces behind the Euro currency.

Last month, the ZEW German economic sentiment came out at 22.3. This month, analysts were expecting it to come out at 20.3. However, the actual figure came out much higher, at 31.7.

Australia – Unemployment Rate

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of the total workforce which remained unemployed over the past month.

Binary options traders 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. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situations in the country.

Last month, the unemployment rate in Australia came out at 4.6%. This month, analysts are expecting it to go up to 4.8%.

EUR/AUD Forecast

EURAUD 2021 11 09 14 33 14

The EUR/AUD remained in a strong downtrend since August 20, 2021. Over the last few months, it fell by around 6.57% or 1080 pips. However, after reaching the support near the 1.5355 level, the EUR/AUD started a bullish retracement towards the downtrend line. Over the last week, it has gained around 315 pips. Currently, it is trading near the pivot zone around the 1.5650 level.

The Australian unemployment rate will likely increase to 4.8% over the last month. By contrast, the German ZEW Economic Sentiment went up unexpectedly from 22.3 to 31.7. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EUR/AUD closes above the resistance near 1.5650, it would likely attract additional bullish momentum in the market.

Hence, binary options traders should look out for trading opportunities above this major resistance level around 1.5650.

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