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EUR/USD binary signal - German factory orders - 08 May 2017

Signal details
Entry Price: 
1.0950
Close Price: 
1.0929
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
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The EURUSD opened the week on a bullish note as prices captured the $1.1000 handle. The gains came on the backdrop of the French elections, where in the second round of voting that was held on Sunday, May 7th, the pro-EU centrist candidate, Emmanuel Macron won by a 65% majority against Le Pen's 35%. The move was widely expected as the markets were pricing in an Macron victory which led to a rather muted response from the markets.

With the main event risk now done with, focus turns back to the economic activity. Traders will continue to assess the Eurozone's economic activity which has been resilient in recent times including an uptick in consumer prices. All of this puts the ECB in a spot where interest rates could start to rise as well as putting an end to its years of quantitative easing policy.

On the economic front, Germany's factory orders figures are expected to rise 0.7% in March 2017, after posting a 3.4% increase in February on a seasonally adjusted basis. This reflects moderation from the strong gains posted in February and January where factory orders rose 6.8%. The gains in February came on account of price-adjusted new orders which increased 2.2% during the month, while domestic orders posted a strong gain of 8.1% increase while foreign demand remained unchanged from the previous month.

The German economy has been one of the strongest economies in the Eurozone and it is expected to push the region's economic activity higher. Later in the week, preliminary GDP estimates from the region are also due to be released. For the EURUSD however, this means a short term decline in the strong rally that has prevailed over the past few weeks.

Therefore, today's binary options trading signal recommendation is to look for daily PUT options in EURUSD as we expect to see prices dip in the near term. Look for the initial support at 1.0950 which could be breached pushing EURUSD to close lower on the day. The daily PUT options in EURUSD as 1.0950 comes with a 20:00 GMT expiry time as the election led gains are most likely to fade in the near term.

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.