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EUR/USD binary signal - Eurozone Consumer Price - 17 May 2017

Signal details
Entry Price: 
1.1100
Close Price: 
1.1152
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
OTM
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The Eurostat office will be releasing the monthly inflation figures for the eurozone today for the month of April. The median consensus points to a 1.9% increase on the headline and 1.2% increase on the core consumer price index, as suggested by the preliminary or flash CPI numbers released few weeks ago. The CPI data is expected to be released at 10:00 a.m. today.

The euro has been on a roll since last Friday after a modest rebound into the weekend quickly developed into a strong momentum led gain in prices. EURUSD was seen rising to a 6-month high on account of a weaker U.S. dollar and receding headwinds in the eurozone.

Furthermore, economic data seems to be firmly entrenched in recovery with yesterday's gross domestic product (GDP) numbers being released confirming that the economic growth in the eurozone grew at a pace of 0.5% in the first three months ending March 2017, pushing the annualized GDP rate to 1.7%.

The 2017 GDP growth rate matched the forecasts from the European Commission's office which released the quarterly economic forecasts a fortnight ago. In the report, officials projected a growth rate of 1.7% in the eurozone this year, slightly higher from 1.6% that was estimated in the previous quarter for this year. With a jump in inflation, especially the core CPI, this could be bullish for the euro and could send hawkish signals to the European Central Bank.

From the above, today's binary options trade recommendation is to purchase daily PUT options in EURUSD as price reached $1.1100 following yesterday's rally. This means that the common currency will likely take a breather from nearly three straight days of posting strong and big gains.

Therefore, look to purchase daily PUT options at 1.1100 for a 20:00 GMT expiry time as EURUSD could be looking to retrace some of the declines and establish support at one of the lower levels.

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.