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EUR/USD binary signal - Germany Trade Balance - 10 Jul 2017

Signal details
Entry Price: 
1.1400
Close Price: 
1.1399
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 3 ratings

The German trade balance data will be released today at 0700 GMT. Economists polled expect the trade balance to rise to 20.3 billion, up from 19.8 billion in April. The data will be released by the German statistics group, Destatis.

In April, the trade balance data showed that exports fell 2.9% and imports increased by 5.4% on a year over year basis and seasonally adjusted. Compared to the previous month, exports were up 0.9% and imports rose 1.2% as a result.

The trade surplus of 19.8 billion was smaller than the previous month which was at 21.2 billion. Exports in Germany continued to play a big role. Exports to the EU member nations were seen at 60.9 billion euro, while exports to other countries outside the EU rose to 40.2 billion. The data showed that the German economy was continuing to surge strongly ahead.

In May, other economic releases showed that the industrial output data surprised to the upside. This suggested that the sentiment as reflected by the German Ifo and the Markit/CIPS PMI data highlighted the fact that the growth was not just a bubble.

The uptick in the industrial output could potentially suggest that the trade surplus could expand even further.

Following the trade balance figures, the Eurozone Sentix investor confidence data will also be coming out. The forward looking indicator is expected to post a small decline to 28.1 compared to 28.4 previously.

While the economic calendar today is a bit quiet, the trade balance and the Sentix investor confidence could add to the market sentiment.

The EURUSD is our preferred binary options signal recommendation for today. The currency pair fell on Friday after briefly rallying to highs of 1.1438. We could expect to see price action continue to push to the downside.

Therefore, we purchase daily PUT options in EURUSD at 1.1400 for a 20:00 GMT expiry time. We expect EURUSD to test the 1.1400 price level once again before the decline in price will gain speed.

Following the retest to 1.1400, we expect to see a reversal at this level on an intraday basis following which the EURUSD could be seen closing lower on the day.

 binary options signal eurusd 10 Jul 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.