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EUR/USD binary signal - Eurozone flash CPI estimates - 31 Aug 2017

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Entry Price: 
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Expiry Time: 
20:00 GMT
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The European statistics agency, Eurostat will be releasing the monthly flash inflation numbers for the month of August today. According to the economists polled, the median estimates show that headline inflation in the Eurozone increased 1.4% while core CPI is estimated to have increased 1.2%.

The flash estimates could potentially further strengthen the case for the ECB tightening next month and could thus be bullish for the common currency. In July, consumer prices in the Eurozone rose 1.3%, accelerating from 1.2% in June. Core consumer inflation which strips the volatile food and energy prices rose 1.2%, at a steady pace.

Consumer prices have been steadily increasing along with the fact that there has been a broad pick up in the Eurozone economy over the past few quarters. The European Central bank will be meeting within a week for its monetary policy. Consensus estimates point that the ECB could signal tightening monetary policy at the next meeting.

The strong gains seen in the euro currency was as a result of speculative rally building up that the ECB will begin to tighten monetary policy soon. With inflation data coming up for August, it will be helpful for the ECB to begin its tightening program as a result.

Meanwhile, the U.S. dollar continues to remain weak. However, yesterday's private payrolls numbers came out slightly stronger than expected, which saw the euro pulling back from the highs.

Based on the above, today's binary options signal is for EURUSD. We expect in the near term that EURUSD will slip to 1.1882 where support is currently being tested. This was a level that previously served as resistance.

Therefore, we are looking to purchase daily CALL options at 1.1882 for a 20:00 GMT expiry time as we expect EURUSD to rebound off the support and close higher on the day.

binary options signal 31 Aug 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.