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EUR/USD binary signal - Focus on the Eurozone - 21 May 2018

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Signal details
Entry Price: 
1.1720
Close Price: 
1.1791
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 5 ratings

The economic calendar is quiet today with not many economic releases in store. However, the markets will be focusing on the developments from the Eurozone. On the economic front, only the ECB's financial stability review report will be published.

Although this report is not expected to move the markets much, it is most likely to shed light on the financial stability in the region. Most importantly, the Italian debt levels which have risen sharply over the past few years come under scrutiny once again.

The report is likely to impact the bond markets which will have some impact in return on the currency markets. Adding to this, Italy's political situation also continues to remain doubtful. With nearly three months after elections, Italian political parties are still scrambling to form a government.

Among the contenders for the top job are the two leading anti-EU establishment parties. A host of promises made by both the parties include threats of leaving the Eurozone and the common currency as well as urging the European Central Bank to write off the Italian debt.

The impact of this was already felt in the markets last week as the euro currency which started the year on a strong note was seen weakening sharply. The continued uncertainty from Italy is likely to keep the common currency on the back foot.

Based on the above today's binary trading signal is EURUSD. The currency pair closed last week with losses, marking five consecutive weeks of declines. However, price action is nearing a multi-year support level which could hold in the first test.

Therefore, we are looking to purchase daily CALL options at 1.1720 for a 21:00 GMT expiry time. We expect to see the EURUSD rebounding off this support level to close higher on the day.

binary options signal 21 may 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. 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.