Forex Market: EUR/AUD daily forecast

During yesterday’s trading session EUR/AUD traded within the range of 1.4380-1.4451 and closed at 1.4429.

At 6:35 GMT today EUR/AUD was losing 0.04% for the day to trade at 1.4418. The pair touched a daily high at 1.4474 at 1:30 GMT, breaching the first key resistance.

Fundamental view

Industrial production in the Euro zone probably jumped 0.5% in April from the previous month, according to the median analyst’ estimate. In March, industrial output dropped 0.3%. On year-over-year basis, the index probably rose 0.9% in April, following an unexpected 0.1% decline in the previous month.

Industrial production is an indicator of the business cycle that shows the activity and development in the industry as a whole, by measuring the change in volume for a certain period of time. Information on industrial production is raised through special studies for EU members, which are called Prodcom. They cover between 5000 and 6000 products. The index measures the percentage change from the previous month.

A larger than expected increase in the industrial output would heighten the appeal of the euro. The official report is due out at 09:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/AUD manages to breach the first resistance level at 1.4460, it will probably continue up to test 1.4491. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4531.

If EUR/AUD manages to breach the first key support at 1.4389, it will probably continue to slide and test 1.4349. With this second key support broken, the movement to the downside will probably continue to 1.4318.