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October 15, 2020
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Bitcoin rebounded on Wednesday, resuming its uptrend to $ 11,600, but quickly bounced back to…
EUR/AUD Bears Tests Key Support Near 1.6230 Amid Forecast of Declining German Retail Sales
Australia – Construction Work Done
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter Construction Work Done index. It measures the changes in the total inflation adjusted value of construction works and projects completed in the country.
Construction industry has a sizeable influence on the overall employment and consumer spending in the economy. Hence, binary options traders consider the Construction Work Done index to be a leading indicator of the Australian economic strength.
Last quarter, the Australian Construction Work Done reading decreased by -3.8%. Analysts are expecting it to decrease by -1.0% this quarter.
Eurozone – German Retail Sales
On Friday, at GMT 7:00 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. The retail sales acts as a primary measurement of consumer spending and consumer confidence. Hence, binary options investors consider it to be an important fundamental indicator.
Last month, the German retail sales figure increased by 0.1%. The forecast for this month was that it will decrease -0.2%.
EUR/AUD Forecast
The EUR/AUD broke above the downtrend line on November 14, 2019. However, it soon found strong resistance near the 1.6300 level. On November 21, it formed a small bearish pin bar. Consequently, the price fell towards the intermediate pivot zone near the 1.6230.
The Australian construction work done figure will likely decrease. But, at a much slower pace than last quarter. On the other hand, analysts are expecting the German retail sales to decrease by -0.2% this month. 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 1.6230, 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 1.6230.
Market Analyst / Trading Consultant . 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
