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EUR/USD binary signal - Eurozone flash PMI's - 23 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, the Eurostat will be releasing both the regional and the Eurozone manufacturing and services PMI figures for the month. The data will include details from Germany and France as well and will be released for the month of August.

The median estimates point to the manufacturing flash PMI to slightly dip to 56.3, while the services flash PMI is expected to remain unchanged at 55.4. Compared to the previous month, the estimates are expected to remain broadly unchanged.

The data comes ahead of the speech from the ECB President Mario Draghi. This event could clearly overshadow the PMI releases. However, Draghi is not expected to make many references to monetary policy. He will be speaking later in the week at the Jackson Hole Symposium.

Experts believe that Draghi could remain on the sidelines at both the events. Still, the market reaction would be hard to predict. Therefore, the EURUSD could be seen rising in volatility.

However, any drastic declines in the flash PMI's could no doubt dent the bullish sentiment in the common currency. But the risks to this are limited.

Based on the above, today's binary options trading recommendation is EURUSD. The currency pair has been trading in a range, with no clear direction in sight. Price action has however established the support at 1.1688 and the resistance is seen at 1.1813. We expect that EURUSD will continue to play out in this range.

Therefore, we purchase daily PUT options at 1.1813 for a 20:00 GMT expiry time. We expect to see the euro continue to trade the range and upside moves could be faded, thus expecting to close lower on the day.

binary options signal eurusd 23 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.