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EUR/USD binary signal - Eurozone Consumer Confidence - 22 June 2017

Signal details
Entry Price: 
1.1155
Close Price: 
1.1151
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 4 ratings

The Eurozone consumer confidence data is expected to be released today at 14:00 GMT by the European Commission. According to the economists polled, the median forecasts point to a reading of -3 on the Index, same as the month before. The data is expected to be released for the month of June.

Previously, the consumer confidence data in the eurozone remained at +0.3 to - 3.3 range and was unchanged from the previous month, while the consumer confidence data for the EU was at 0.1 to -3.3 compared to the previous month (April).

The data is unlikely to make a major impact on the EURUSD although signs of weakening in the consumer confidence data could signal that growth could slow down. The Eurozone's Gross Domestic Product (GDP) has been on a surge this year with growth expected to average around 1.7% - 1.9% this year. This is a significant leap considering that the region is still supported by the European Central Bank's (ECB) economic stimulus program.

Recently, other regional countries have also seen an uptick in growth and not just Germany. The ECB has been repeatedly been attacked by officials to tighten monetary policy. Therefore, indirectly, today's consumer confidence data could see officials watching the numbers closely for any signs of a slowdown.

Based on the above, the binary options signal recommendation for today is the EURUSD. The currency pair closed bullish yesterday after posting a low of 1.1126. The bullish close and the reversal near 1.1150 signals that a near term rally is on the cards. This could potentially push EURUSD back higher, although resistance at 1.1192 remains to be seen. If this resistance breaks out, EURUSD could rally even higher.

Although the downside bias remains in EURUSD, we can expect to see some short term strength as EURUSD posts this retracement. Therefore we would purchase daily CALL options in EURUSD at 1.1155 for a 20:00 GMT expiry time.

On an intra-day basis, we expect EURUSD to dip only slightly towards 1.1155 before continuing to close higher on the day.

binary options signal eurusd 22 Jun 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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.