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EUR/USD binary signal - Eurozone flash GDP - 31 Oct 2017

Signal details
Entry Price: 
1.1670
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
4.5/5 of 6 ratings

The European Statistics agency, Eurostat will be releasing the flash GDP report for the region covering the three months ending September. The flash GDP report will be released at 10:00 GMT. According to the economists polled, the GDP in the Eurozone is expected to rise 0.5% in the third quarter. This is slightly below the second quarter estimates of 0.6%.

Simultaneously, the flash inflation estimates will also be coming out for October. Economists' forecasts that headline consumer prices in the Eurozone rose 1.5% while core CPI is forecast to rise 1.1%. This would mark the same pace of increase compared to the previous month on an annual basis.

Both the economic reports will play a crucial role going forward. The markets were hopefully that the ECB would be more hawkish. However, last week's ECB meeting showed that although QE was tapered, it was extended to a period of another nine months through September 2018.

The ECB maintains a cautious stand on the monetary policy as it indicated that further convincing evidence was needed. With investors turning bearish on the euro due to the dovish forward guidance, today's economic data will be of importance.

The CPI and GDP reports will shape the market view on the euro in the near term. This comes while data from the U.S. continues to show an uptick with latest GDP reports showing that the U.S. economy expanded at a pace of 3% in the third quarter.

Based on the above, today's binary options trading signal is EURUSD. The currency pair breached the support level near 1.1688 on Friday and attempted to retrace some of the losses. This minor pullback is unlikely to last as the bearish trend in the short term will resume.

Therefore, we are looking to purchase daily PUT options at 1.1670 for 21:00 GMT expiry time. We expect the bearish flag pattern currently forming in EURUSD to see the bearish trend evolving as price is likely to close lower on the day.

binary options signal eurusd 31 Oct 2017

Comments

Toni H.'s picture

EURUSD posted an intraday high towards 1.1660, which was 10 pips short of our entry. The trade was therefore not triggered. The currency pair closed on a slightly bearish note as price quickly fell back from the intraday highs. The declines came as economic data from the Eurozone was mixed. While inflation figures weakened, flash GDP estimates showed an increase on both the second and the third quarters. The EURUSD closed with a near doji looking session and failed to retest the resistance level of 1.1670 where we were looking to purchase daily PUT binary option. As a result, EURUSD closed lower at 1.1646 for 21:00 GMT.

Toni H.

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.