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EUR/USD binary signal - U.S. New Home Sales - 27 Nov 2017

Signal details
Entry Price: 
1.1940
Close Price: 
1.1899
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 6 ratings

The markets open the fresh week on a quiet note. The economic calendar today is very quiet especially during the Asian and the European trading session. The only major data point of release today is the U.S. new home sales data which covers the period of October.

According to the economists polled, the new home sales in the United States are expected to show 627k single family home sales for the month. This is a modest print considering that in the previous month, new home sales surged 667k on an annualized basis.

In percentage terms, new home sales rose 18.9% on an annualized basis in September. This was the strongest increase in nearly a decade. The surge in new home sales of single family units comes amid an environment of low interest rates and steady job growth.

The forecasts for October, although slightly lower than the previous month still shows that home sales remained strong during the month. Even a decline during the month would not have any major impact. The U.S. housing market has been relatively stable for the most part this year.

With only the new home sales data for release today, most of the trading is expected to be technical. Therefore, based on the above, today's binary options signal is EURUSD. The currency pair posted strong gains last week although it opened last week on a softer note.

Closing on Friday at 1.1934, the EURUSD has managed to breach the resistance level. We expect to see some near term consolidation however. Further bullish gains can be expected only on a breakout above 1.1940. However, we expect to see a pullback near or around this level.

Therefore, we would purchase daily PUT options at 1.1940 for a 21:00 GMT expiry time as a short term resistance has been formed. We expect EURUSD to test this level in the near term and close lower on the day.

binary options signal EURUSD 27 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.