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EUR/USD binary signal - Eurozone revised GDP - 07 Jun 2018

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Expiry Time: 
21:00 GMT
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The revised GDP estimates for the first quarter will be released today by the European Statistics agency, Eurostat. According to the economists polled, the Eurozone first quarter GDP, according to the revised estimates is expected to see no change from the previous estimates.

The initial estimates showed that the Eurozone GDP had increased at a pace of 0.4% in the first three months of the year ending March 218. This marked a slower pace of GDP growth following a 0.7% increase in the final quarter of 2017.

Despite the decline in the GDP officials have maintained the view that the Eurozone economy would rebound by the second quarter of the year. However, latest data over the two months into the second quarter showed that the Eurozone economy continued to remain in a sluggish pace of growth. However, the bright spot was the pickup in inflation.

Flash inflation estimates showed that consumer prices accelerated in May. This brings some confidence for policy makers at the ECB.

Today's data is unlikely to make a big impact on the prospects of the Eurozone and the ECB's plans to end its QE program by end of September 2018. Still, a slight uptick could be seen as a signal that could validate the view that the weak patch of growth was only temporary.

With the ECB's meeting due next week, this week's inflation and GDP data will be closely watched by traders ahead of the monetary policy and QE decision due next week.

Based on the above, today's binary trading signal is EURUSD. The currency pair has managed to break the resistance level and there has been no pullback ever since. However, with price approaching the next resistance level, we expect to see a pullback.

Therefore, we would consider daily PUT options in EURUSD at 1.1824 for a 21:00 GMT expiry time. We expect the currency pair to retreat from the resistance level and eventually close lower on the day.

binary trading signal eurusd 07 jun 2018

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.