EUR/AUD Fundamentals Suggest a Range Bound Market with Short-Term Upside Potential

Australia – National Australia Bank (NAB) Limited Business Confidence Index

Tomorrow, at GMT 1:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.

The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, binary options investors consider it as a leading indicator of the overall economic health in the coming months.

Last month, in August, the NAB business confidence index came out at 5, after reaching as high as 10 in July and the declining to 1 in October. Any figure below 5 would indicate a continuation of the declining trend in the business confidence level in Australia.

Eurozone – German Preliminary GDP

On Friday, at GMT 7:00 a.m., the Destatis will release the quarter-over-quarter German Preliminary GDP figure, which measures the changes in the value of all products and services produced by the Germany economy. However, this figure is adjusted for inflation in order to provide a more accurate data.

Binary options traders consider the German GDP to be one of the most vital fundamental indicators of measure the production in the Eurozone economy, as German economy makes up a large part of the entire Eurozone economic activities.

Last quarter, the German preliminary GDP grew by 0.4% and the forecast for this quarter is currently set at a slightly lower rate of growth, at 0.3%.

Trade Recommendation for the EUR/AUD

EURAUDDaily

After the EUR/AUD price broke below the uptrend line on October 22, it has fell around 430 pips over the last few weeks.

Last Friday, the EUR/AUD formed a Doji, which engulfed the previous two daily bars. If the EUR/AUD price penetrates and closes above the high of this Doji, from a technical point of view, it would indicate additional bullish momentum.

Although the fundamental outlook for the EUR/AUD remains range bound for the moment, the price is currently trading at the lower end of the range and has the potential to move a bit higher towards the resistance around 1.5600.

Under the circumstances, it would be recommended that traders consider placing a CALL order for the EUR/AUD with their binary options brokers, once the price closes above the 1.5290 level.

Recommended Broker: Tradorax

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