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EUR/USD binary signal - U.S. core durable goods orders - 27 Sep 2017

Signal details
Entry Price: 
1.1800
Close Price: 
No Trade
Direction: 
High
Expiry Time: 
20:00 GMT
How we trade
5/5 of 3 ratings

The U.S. department of commerce will be releasing the monthly durable goods orders report at 12:30 GMT today. According to the economists polled, the median estimates point to a 0.2% increase on the core durable goods while the headline durable goods orders are expected to rise 1.1%.

The estimates are slightly hawkish considering that durable goods orders fell 6.8% on the headline while rising 0.6% on the core. However, despite the hawkish estimates, there is scope that durable goods orders numbers could continue to disappoint.

Considering that the data will be for the month of August, the markets will most likely ignore the data as the hurricanes that hit the U.S. in late August and September could potentially dampen the durable goods orders outlook.

Previously, durable goods orders posted a modest increase, rising on the back of an increase in U.S. orders for business equipment. The data for July was the biggest gain since February this year on a month over month basis. Excluding aircraft, non-military capital goods orders rose 0.4%, which was seen contributing to nearly 1% of the U.S. GDP.

Prior to that, durable goods orders slipped nearly 6.8%, more than estimated which was the biggest monthly decline in nearly three years. The data for August showed a pick up in the durable goods and suggested that the momentum could continue to rise. However, the markets are likely to react cautiously to the data knowing that a slowdown due to the hurricanes could be nearby.

Based on the above, today's binary options trading signal is EURUSD. The common currency was seen opening the week on a bearish note after the German elections dented the sentiment in the eurozone.

Despite Angela Merkel's CDU/CSU winning the elections, it is expected that the coalition partnership could be difficult to negotiate. Furthermore, the rise of the fringe parties has also led to a cautious mood.

The EURUSD has declined for two consecutive days but we expect to see some near term pullback in prices. Therefore, we are looking to purchase daily CALL option at 1.1800 for a 20:00 GMT expiry time. We expect to see EURUSD retracing the gains and retesting the resistance level of 1.1843, closing higher on the day.

binary options signal eurusd 27 Sep 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.