The EURAUD has been stuck firmly within a range through the short-term, with a relatively empty calendar out of both the Euro Zone and Australia promising little reason to break beyond well-established support and resistance.
[B]Trading Tip - The EURAUD has been stuck firmly within a range through the short-term, with a relatively empty calendar out of both the Euro Zone and Australia promising little reason to break beyond well-established support and resistance. The trader may look to go long at a bounce off of trendline price floors of 1.5840, setting a stop at 1.5808. Initial profit targets shall be eyed at congestion resistance of 1.5900, but extension could take the pair to 1.6000. Watch for a shorting opportunity if the pair fails to break above 1.6000.[/B]
[B]Event Risk Europe and Australia[/B]
[B]Europe[/B] - Euro Zone economic data will be relatively light through the coming week of trade, with foreseeable event risk unlikely to cause large moves in the EUR. Possible exceptions include Euro Zone CPI data and later German business confidence numbers. Though improbable, any surprises in said data could easily shift outlook on broad EZ inflationary conditions. Otherwise, German ZEW data on the 17th does not typically produce strong moves in the domestic currency. Outlook for the euro leaves it in an ideal position for range trades through the coming week.
[B]Australia[/B] - The Australian calendar consists of largely second-tier data through the coming week of trade. Potential exceptions include significant surprises in the Westpac Leading Index, as well as above or below consensus Import and Export Price indices. Otherwise, these reports are unlikely to force the AUD beyond its current range against the EUR, allowing for solid profit opportunities on low-volatility trading strategies.
[B] Data for July 16 - July 21 Data for July 16 - July 21
Date Euro Economic Data Date Australian Economic Data[/B]
Jul 16 Euro Zone CPI (JUN) Jul 16 Balance of Payments Imports (JUN)
Jul 17 German ZEW (JUL) Jul 17 Westpac Leading Index (MAY)
Jul 18 Euro Zone Trade Balance (MAY) Jul 19 Import Price Index (Q2)
Jul 19 Export Price Index (Q2)
Jul 19 New Motor Vehicle Sales (JUN)