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EUR/USD binary signal - U.S. Budget spending - 22 Jan 2018

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Signal details
Entry Price: 
1.2235
Close Price: 
1.2258
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The United States government is embroiled in politics once again as lawmakers failed to push the budget in ahead potentially entering into a government shutdown period.

Although the short term spending proposal was passed by the U.S. Congress, the bill to increase the spending stalled in the U.S. Senate. Both Republicans and Democrats were seen blaming each other for the impasse. The U.S. Senate leader said on late Saturday that they would take up the spending plan and approve it by Monday morning U.S. time so that the government can continue spending until February 8th.

However, Trump's hard stance on some issues that immigration and other aspects saw the spending bill coming to a halt. The U.S. dollar was seen rising slightly on Friday initially on hopes that the spending bill could be passed in time and on the optimism that the government would avoid a shut down.

The U.S. dollar index initially slipped back to previously established lows but managed to close higher on the day.
The lack of economic data today is expected to see investors focusing on the developments from Washington. The calm day ahead as far as the economic calendar is concerned comes ahead of an action packed week which will see the Bank of Japan's monetary policy meeting on Tuesday and the European Central Bank's meeting on Thursday.

Based on the above, today's forex binary signal is EURUSD. The currency pair initially weakened after rising to a 4-year high last week. However, price action was seen recovering the losses on Friday but only closed on a bearish note. We expect EURUSD to retrace the gains in the short term.

Therefore, we are looking to purchase daily CALL options at 1.2235 for a 21:00 GMT expiry time. We expect EURUSD to rebound and close higher on the day.

binary options signal 22 Jan 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.