Forex Market: EUR/AUD trading forecast for Monday

Friday’s trade saw EUR/AUD within the range of 1.4493-1.4334. The pair closed at 1.4424, shedding 0.24% on a daily basis.

Fundamental view

Eurozone

Sentix GmbH will report at 09:30 GMT on investor confidence within the Eurozone in November. According to analysts’ forecasts, investor sentiment probably deteriorated this month, with the corresponding index projected to come in at -15.0 compared to -13.7 in October. If confirmed, this would be the worst level of confidence since May 2013.

The report is based on a survey encompassing about 2 800 investors and analysts. A reading above the zero threshold indicates optimism, and vice versa.

Another report by Italy’s National Institute of Statistics (ISTAT) is anticipated to show that the nation’s industrial output expanded by an annualized 0.4% in September following a 0.7% contraction a month earlier and a 1.8% decline in July.

In monthly terms, Italy’s industrial production probably grew by 0.2% following up on a 0.3% jump in August.

In Greece, industrial production likely contracted at the annual pace of 3.3% in September after it slid 5.7% a month earlier, while consumer prices probably decelerated by an annualized 0.6% in October following a 0.8% deflation a month earlier.

Australia

The Australian Bureau of Statistics is expected to report at 0:30 GMT that the number and value of outstanding home loans in Australia probably declined by 0.4% in September on a monthly basis, following another 0.9% contraction in August.

Home Loans are a measure of activity in the housing market, which acts as a gauge of consumer confidence since consumers usually raise their credit activity amid sufficient savings or a positive sentiment toward future economic developments.

Pivot points

According to Binary Tribune’s daily analysis for Monday, the central pivot point for the pair is at 1.4417. In case EUR/AUD manages to breach the first resistance level at 1.4500, it may continue up to test 1.4576. In case the second key resistance is broken, the pair could attempt to advance to 1.4659.

If EUR/AUD manages to breach the first key support at 1.4341, it may continue to slide and test 1.4258. With this second key support broken, movement to the downside could continue to 1.4182.

The mid-pivot levels for Monday are as follows: M1 – 1.4220, M2 – 1.4300, M3 – 1.4379, M4 – 1.4459, M5 – 1.4538, M6 – 1.4618.

In weekly terms, the central pivot point is at 1.4429. The three key resistance levels are as follows: R1 – 1.4595, R2 – 1.4766, R3 – 1.4932. The three key support levels are: S1 – 1.4258, S2 – 1.4092, S3 – 1.3921.