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EUR/USD binary signal - Eurozone Sentix Investor Confidence - 04 Sep 2017

Signal details
Entry Price: 
1.1884
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
20:00 GMT
How we trade
5/5 of 4 ratings

The Eurozone Sentix investor confidence report will be released today at 08:30 GMT. According to the economists polled, the investor confidence index is expected to slightly slip to 27.4 in September. This is about 0.3 points lower from the month of August which registered a reading of 27.7.

The Sentix economic index is said to be the first economic indicator that shows the potential state of the economy. More importantly the Sentix indicators, being forward looking indicators tend to signal any upcoming shifts in the economy. As a result, the data being released today could give an overview of what to expect from the Eurozone.

This will be important as the ECB meets this Thursday. With the markets strongly pricing in the fact that ECB President Mario Draghi will signal some form of QE tapering, a lot of it speculation.

In July, the Sentix index rose to the highest level of 28.3 and has managed to slightly slip from this high. According to previous month's report, the data showed that investor confidence also slipped slightly for Germany. Still, the overall index shows an optimistic outlook for the Eurozone. This is broadly in line with various other measures that show that the economic outlook in the region will continue to improve.

What this means for the euro currency is that, traders will most likely shrug off any news until this Thursday's ECB meeting.

Based on the above, today's binary options signal is EURUSD. The currency pair posted losses on Friday after previously rallying to highs near 1.2000. Therefore, we look to purchase daily PUT options at 1.1884 where a resistance level is likely to be formed.

Following a brief retracement to 1.1844, we expect EURUSD to resume its declines, closing lower on the day.

binary options signal eurusd Sep 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. 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.