EUR/AUD Likely Break the Support Near 1.6050 Amid Forecast of Strong Growth in Australian Housing Market

Eurozone – German Retail Sales

On Monday, at GMT 6:00 a.m., the Destatis released the month-over-month German retail sales data. It measures the changes in the total value of sales at the retail level in the country.

The German economy makes up a large portion of the overall Eurozone economy and the retail sales acts as a primary measurement of consumer spending and consumer confidence. Hence, binary options traders consider it to be an important fundamental indicator.

Last month, the German retail sales figure declined by -0.4%. The forecast for this month was that it will increase by 0.4%. However, the actual figure came out at -0.1%.

Australia – Building Approvals

On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.

A build permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure increased by -5.2%. This month, analysts are expecting it to increase by 1.2%.

EUR/AUD Forecast

The EUR/AUD remained highly bullish since June 4, 2018. Over the last several months, it formed a well-respected uptrend line. However, after reaching near 1.6350, it found a strong resistance earlier in September. Over the last three weeks, the EUR/AUD declined by around 310 pips and broke below the support around 1.6140. Currently, it is testing the support near 1.6050.

The Australian building approval figure will likely increase by 1.2% over the last month. On the other hand, the German retail sales declined by -0.1%. We believe it would set a bearish fundamental outlook for the EUR/AUD this week. Therefore, if the EUR/AUD closes below the support near 1.6050, 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 1.6050.

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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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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