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EUR/USD binary signal - German ZEW economic sentiment - 20 Feb 2018

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Signal details
Entry Price: 
1.2363
Close Price: 
1.2336
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
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The German institute ZEW will be releasing the economic sentiment index report today at 10:00 GMT. According to the economists polled, economic sentiment in Germany is expected to show a decline to 16.5 on the index for the month of February.

This marks January's increase to 20.4. The German ZEW economic index has been steadily rising since September last year and reached a fresh high at 20.4. The optimism in the Eurozone economy and the recovery was well reflected.

The data comes as other forward looking indicators point to a strong momentum in the Eurozone. This suggested that the Eurozone economy which grew at a pace of 2.5% annually in 2017 managed to maintain the same pace of growth during the first month of the year. Economists are positive that the Eurozone economy might have maintained the same pace of growth in the first quarter of this year.

The markets are currently expecting to see the strong growth being underlined by further tightening from the European Central bank. Although the ECB is expected to maintain its QE purchases until September this year, there is strong speculation that the central bank will stop its QE purchases this year.

Today's binary signal is EURUSD, the currency pair was seen continuing to consolidate near the top end of the rally. Despite some interim strength in the USD, the euro has managed to reverse the losses as it trades comfortably close to the 1.24 handle.

While price action has been declining, we expect a short term rebound to the upside as the currency pair approaches the support level. Therefore, we would purchase daily CALL options in EURUSD for a 21:00 GMT expiry time at 1.2363. Following the retest to the support level, we expect EURUSD to close higher on the day.

binary options signal eurusd 20 feb 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.