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EUR/USD binary signal - U.S. Consumer price index - 11 Aug 2017

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20:00 GMT
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The U.S. consumer price index data is expected to be released today at 12:30 GMT. According to the median estimates, the forecasts are for the monthly consumer price index to rise 0.2% for July. The core CPI which excludes the volatile food and energy prices are also expected to rise 0.2% on the month. The forecasts are slightly hawkish considering that consumer prices stayed flat on the headline for June while core CPI rose 0.1% the month before.

The forecasts for July's inflation numbers are hawkish as the economists expect that higher prices for Oil will push energy prices higher. On a year over year basis, the headline inflation rate is expected to rise to 1.8%, accelerating from 1.6% previously in June. The core CPI rate on a year over year basis is expected to rise 1.7%, rising at the same pace as the previous month.

A better than expected inflation data will no doubt help to push the U.S. dollar higher in the short term. Sentiment in the greenback remains somewhat mixed with the currency being hit by uncertainty. The ongoing tensions between the United States and North Korea further attribute to the weakness that is already prevailing in the USD.

Based on the above data, today's binary signal recommendation is EURUSD. The currency pair has remained firmly supported above 1.1730. Multiple attempts to break below this support have failed. Therefore, we look for daily PUT options at 1.1800 which is the upside resistance level that will be tested.

The common currency remains well bid against the U.S. dollar and thus price action is expected to push to the upside in the near term. However, we expect to see a reversal in price at 1.1800. Therefore, following a retest to 1.1800 resistance level, EURUSD is expected to push lower on the day.

binary options signal 11 Aug 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. 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. All risks and coasts associated with online trading are your responsibility.