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EUR/USD binary signal - German Trade Balance Data - 09 Apr 2018

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Signal details
Entry Price: 
1.2275
Close Price: 
1.2320
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The economic calendar today is light with mostly second tier data. The German trade balance numbers are scheduled to be released at 0600 GMT today and according to the economists polled, trade balance is expected to widen to 23.1 billion euro. This marks a modest increase compared to the previous month where trade balance was seen at 21.3 billion euro.

The German trade balance data comes at a crucial time for the markets especially as the U.S. President Trump has been imposing strict tariffs on global imports into the United States. Although Trump has been targeting China at the moment, there is scope that a bigger trade surplus from Germany could potentially catch the attention of the U.S. administration.

The United States had previously called out Germany for pursuing unfair trade practices by keeping the euro currency weaker in order to gain a competitive edge. Although German and ECB officials brushed aside the allegation, given the fact that the U.S. President has been very vocal about global trade could potentially play a role in the markets.

Besides the German trade balance, the Eurozone Sentix investor confidence data will also be coming out. Investor confidence is expected to take a hit as the index is forecast to fall to 21.2 down from 24.0 seen the month before.

Based on the above, today's binary signal is EURUSD. The currency pair was seen weakening into Friday's close but posted a rebound. We expect a near term rebound in prices but price action is expected to remain near the current lows.

Therefore, we are looking purchase daily PUT options at 1.2275 for a 21:00 GMT expiry time as we expect the EURUSD to potentially ease back to close lower on the day.

binary options signal 09 apr 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.