EUR/AUD Would Likely Remain Bearish This Week amid Declining Retail Sales in Germany

Eurozone – German Retail Sales

Today, at GMT 2:00 a.m., the Destatis released the month over month German retail sales data, which measures the changes in the total value of sales at the retail level in the country.

Since 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, binary options investors consider it to be an important fundamental indicator.

In October, the German retail sales figure remained unchanged and the forecast for October was set at a modest growth of only 0.3%. However, the actual figure came out much worse than what the market was expecting, at -0.4%.

Australia – Building Approvals

Later in the evening, at GMT 7:30 p.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options traders 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 went up by 2.2% and the forecast for this month is currently set at a decrease of 2.4%.

Trade Recommendation for the EUR/AUD

EURAUDDaily

The EUR/AUD formed a bearish pin bar on September 29, 2015 and since then the pair has been on a downtrend. Over the last two months, the EUR/AUD formed a well-respected downtrend line as well.

From a technical point of view, the EUR/AUD price may up go and reach near the downtrend line to test the resistance before resuming the prevailing trend. But, if the price penetrates above the trend line, we have to revise our thesis.

Regardless, as the German retail sales came out much worse than what the market was expecting, is more likely that the EUR/AUD downtrend would continue this week.

Under the present circumstances, it would be recommended that traders consider placing a PUT order for the EUR/AUD with their binary options brokers, once the price closes below last week’s low, which is at 1.4580.

Recommended Broker: Porter Finance

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