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EUR/USD binary signal - ADP Private Payrolls - 04 Oct 2017

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Signal details
Entry Price: 
Close Price: 
No Trade
Expiry Time: 
20:00 GMT
How we trade
5/5 of 4 ratings

The U.S. private payrolls firm, ADP and Moody's analytics will be releasing the monthly private payrolls data for the month of September. The data is expected to be released today at 12:15 GMT. According to the economists polled, the median estimates are for the private payrolls to increase 151k during the month of September. This is expected to be a weaker print following private payrolls rising 237k just the month before.

Despite the median estimates pointing to a 151k increase for September, the actual data comes with a big risk of missing the estimates. This is due to the fact that the three hurricanes that hit the U.S. in the month of September could potentially impact the jobs market during the month. Still, the impact of the natural disasters is expected to be limited and affect only the short term outlook.

The markets are well prepared for a weak onset of economic data for the month of September on account of this. The Fed Chair, Janet Yellen told reporters following last month's FOMC meeting that weaker economic data is expected. However, she reiterated that the impact will be only for a short term.

Later in the day, following the ADP report, the Fed Chair Janet Yellen is expected to speak again. Investors will be closely listening to the speech from Yellen for any clues on the Fed's opinion on hiking interest rates.

A better than expected jobs report data could potentially cement these expectations. But, markets will have to wait until Friday's official payroll numbers for the conviction to be built. It will be a busy day for the U.S. dollar as the ISM's non-manufacturing PMI is also expected to be released ahead of the Fed Chair's speech.

Based on the above, today's binary options signal is EURUSD. The currency pair posted declines over the past few days after failing to make any fresh highs in the trend. Price action is bounced off support at 1.1720 and we expect this support to hold in the near term after another modest retest.

Therefore, we purchase daily CALL options in EURUSD at 1.1720 for a 20:00 GMT expiry time. We expect to see EURUSD bounce off from the support and potentially close higher on the day.

binary options signal eurusd 04 Oct 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.