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EUR/USD binary signal - U.S. Factory Orders - 06 Mar 2018

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Signal details
Entry Price: 
1.2330
Close Price: 
1.2403
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
4.3/5 of 6 ratings

The monthly U.S. factory orders data will be released today at 15:00 GMT. According to the economists polled, factory orders are expected to decline 0.4% on the month. This comes following December's strong increase in factory orders registering a print of 1.7%. The U.S. factory orders had advanced for the fifth consecutive month as orders for non-defense capital goods that excludes aircraft were seen as a measure of business spending plans.

Shipments of core capital goods which adds to the nations GDP was seen rising 0.4% in the month of December. If today's report posts a decline as expected it would stall the five consecutive months of increases in the factory orders.

Besides the factory orders data, earlier in the day, the FOMC member William Dudley will be speaking. Dudley's comments will come as the Fed holds its next FOMC meeting later this March. According to the market speculation, the central bank is expected to hike interest rates by 25 basis points this month. However, there is still some uncertainty left in the markets given last week's Powell's testimony to congress.

On the first day of his testimony, Powell, the new Fed Chair commented that the U.S. economy was bright and warranted more rate hikes. However, in the second day of his speech, Powell's comments were more neutral.
In the run up to the FOMC meeting, the Fed speeches will likely impact the market as investor's asses the next rate hike from the Federal Reserve.

Based on the above, today's binary options signal is EURUSD. The currency pair was seen rebounding back to the resistance level but failure to post higher highs could suggest weakness in the currency pair. Therefore, we are looking to purchase daily PUT options in EURUSD at 1.2330 for a 21:00 GMT expiry time.

We expect to see some consolidation in the resistance level following which, the currency pair is expected to close lower on the day.

binary options eurusd signal 06 mar 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.