EUR/AUD to Likely Remain Bullish Despite Forecast of an Improving Labor Market in Australia

EUR/AUD – Technical Analysis for Forex Trading & CFDs.

Eurozone – German ZEW Economic Sentiment

On Tuesday, at GMT 9:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) will release 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, Forex 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 the most important driving forces behind the Euro currency.

Last month, the ZEW German economic sentiment came out at 5.1. This month, analysts are expecting it to come out at -0.8.

Australia – Unemployment Rate

On Thursday, at GMT 11:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

Forex 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 the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.6%. This month, analysts are expecting it to come down to 5.5%.

EUR/AUD Forecast

Since forming a pin bar on February 22, 2017, the EUR/AUD remained highly bullish. Over the last year, the EUR/AUD climbed up by around 2450 pips. But, after reaching near the 1.6180 level, it turned bearish. Last week, the EUR/AUD formed a bullish pin bar and currently approaching the resistance near the 1.5930 level.

The German ZEW Economic Sentiment is set to decline to -0.8. On the other hand, the Australian unemployment rate may come down from 5.6% to 5.5% over the last month. Although the fundamentals suggest a bearish thesis, the current bullish momentum is too strong. We believe if the EUR/USD breaks and closes above the 1.5930 level, it would likely attract additional bullish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities above below this major support resistance level around 1.5930.

BTC/AUD Forecast

The BTC/AUD remained range bound since February and it mostly traded sideways between 8,750 and 10,750 levels. Last week, the BTC/AUD penetrated above the 10,750 level, but failed to close above it.

There was a lot of negative news regarding central banks discouraging citizens from using cryptocurrencies. Nonetheless, last week, a Spanish bank called Santander launched a blockchain-based international payment service called “Santander One Pay FX.”

Santander One Pay FX is based on Ripple’s xCurrent technology. However, investors consider this new development to be a positive news for the blockchain technology. Also, it will have a bullish effect on all cryptocurrencies such as bitcoin. Therefore, if the BTC/AUD breaks and closes above the 10,750 level, it will likely attract additional bullish momentum in the market.

Hence, Australian bitcoin traders should look out for trading opportunities above this major resistance level around 10,750.

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 about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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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 about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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