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EUR/USD binary signal - German Quarterly GDP - 23 Nov 2017

Signal details
Entry Price: 
1.1825
Close Price: 
1.1850
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The German quarterly GDP data will be released today at 0700 GMT. This will be the final GDP revision covering the third quarter and will be released by the statistics agency, Destatis. According to the economists polled, German final GDP for the quarter ending September is expected to remain steady at 0.8%. This will confirm that German economic activity rose at the fastest pace on a quarterly basis since May 2011. On a year over year basis, the German GDP is expected to post a growth rate of 2.3%.

An unrevised print is unlikely to move the euro currency much. Currently, the common currency was seen coming under pressure due to the German political developments. On Monday this week, the euro fell as a result of the German politicians failing to form a coalition government.

The uncertainty weighed on the euro as the possibility of a snap election reared its ugly head. With the far-right AfD party making inroads strongly, the markets are also treating the developments cautiously. The political uncertainty in Germany comes despite the nation posting one of the fastest economic recoveries in the Eurozone.

Besides the German GDP data, the flash manufacturing and services PMI numbers will also be released today. The data is expected to show that the economic activity from the leading nations continue to show upside momentum. But traders are likely to brush aside any positive news, focusing on the outcome of the ongoing coalition talks from Germany. The current scenario also puts into question the possibility of the outcome of the Brexit talks.

Based on the above, today's binary options signal is EURUSD. Despite the currency pair turning strongly bullish yesterday we expect that the downside will prevail as the currency pair tests the previously established resistance level.

Therefore, we are looking to purchase daily PUT options at 1.1825 for a 21:00 GMT expiry time. The failure to breakout from the resistance level is expected to push EURUSD to close lower on the day.

binary options signal EURUSD 23 Nov 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.