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EUR/USD binary signal - Italy industrial production - 12 June 2017

Signal details
Entry Price: 
1.1236
Close Price: 
1.1204
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
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The monthly industrial production statistics from Italy will be released today by the statistics agency Istat at 0800 GMT. Economists polled are expecting that industrial production increased 0.2% on the month in April. In March, Italy's industrial production 0.4% on a seasonally adjusted basis from the previous month. Data also showed that the percentage change over the previous months showed a decline of 0.3%.

The Italian industrial production numbers might not move the markets much today, but the economic calendar is quiet with not much of major events to go by. In this aspect, the numbers could gain some significance. However, for the major part, it will be the ongoing factors, especially from the UK that will influence the euro's exchange rate.

Last week's election results showed that the UK vote was split, leaving many options on the table and lots of uncertainty. This is likely to impact the euro positively as the UK and EU start Brexit talks in a week's time.

Based on the above factors, the binary options trade recommendation is EURUSD. Last week, the EURUSD closed bearish and formed an inside bar. This comes after a strong rally in the previous weeks that pushed the common currency to a 7-month high.

With the FOMC meeting due mid-week, the euro could be in check as there is potential for the U.S. dollar to appreciate in the near term.

From a technical perspective, EURUSD is expected to see some downside with the break out from the wedge pattern. In the near term, EURUSD could be seen retesting back to 1.1236 which marks the break out level. Following this retracement, we can expect the downside to follow through.

Therefore, we would purchase PUT options in EURUSD at 1.1236 for 20:00 GMT expiry time as price action is likely to post a small gain followed by a potential decline to the end of the day.

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.