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EUR/USD binary signal - FOMC Meeting minutes - 24 May 2017

Signal details
Entry Price: 
1.1200
Close Price: 
1.1214
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
OTM
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The Federal Reserve will be releasing the meeting minutes from the May 2 - 3 interest rate meeting that was held. The minutes, which will be released at 18:00 GMT will shed more light on the Fed's decision to leave interest rates unchanged this month and forward guidance.

Investors will be closely looking to the meeting minutes today which could offer insights on when to expect the next rate hike. Currently, the markets are pricing in a probability of a rate hike in June. A confirmation about this will help to keep the U.S. dollar supported which has fallen sharply over the past week. Co-incidentally, the U.S. President Trump also unveiled his tax plans which amounts to over $4 trillion.

Although not the same as fiscal spending plans and by no means a final authority over the budget, the wish-list is likely to be watered down by the Congress. Still, considering the timing of this news release, the dollar could see some upside in prices in the near term.

A lot will depend on today's FOMC meeting minutes' release however. So far, Fed officials have stayed mum on the context of interest rate hikes. Furthermore, the markets will need to see the May jobs report that could be critical to the June rate hike.

The EURUSD attempted to break out from the previous 6-month highs yesterday but failed to do so and instead, ended up closing on a bearish engulfing note. This could potentially signal a near term correction in prices which has been in a steady uptrend since past few weeks.

Therefore, based on the above factors, today's binary options trading signal recommendation is to purchase daily PUT options in EURUSD as we expect to see any attempts at retracing yesterday's losses being met with resistance in the near term. Purchase daily PUT options in EURUSD at 1.1200 for a 20:00 GMT expiry time, following which we can expect to see some downside push the currency pair lower.

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.