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EUR/USD binary signal - U.S. Import Prices - 10 May 2017

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The United States import prices data is due for release today. Data is expected to show a 0.2% increase on a month over month basis in April, after falling 0.2% in the month before. The data is expected to be released at 13:30 GMT today.

In March, import prices fell 0.2% after import prices rose steadily the three months before March. The declines in import prices were as a result of lower fuel imports which offset the rising non-fuel prices. However, the U.S. exports continued to post a steady increase, with March figures showing a 0.2% jump following a 0.3% increase in February.

In March, import prices rose 4.2% on a year over year basis. Fuel imports fell 3.8% which marked the biggest one-month drop since February 2016. Natural gas imports fell 11% while petroleum products fell 3.6% during the month. Exports rose 3.6% on an annualized basis during March. The gains came from an increase in agricultural exports of 0.9% and a 4.4% increase in meat prices.

Besides the U.S. import prices, the economic calendar is very light today with no other events scheduled. However, ahead of this data release, the European Central Bank president, Mario Draghi is expected to speak in Netherlands. If Mr. Draghi talks about monetary policy, the euro could be looking at some volatility.

The currency pair in focus for today's binary options trading signal is of course, the EURUSD. The euro has been posting steady declines over the past two days with today's price action showing some bullish momentum as price is looking to recover some of the losses.

However, the retracement in the price will see EURUSD likely to struggle near the 1.0900 - 1.0930 price level where resistance is likely to be formed. This could possibly stall the current gains before EURUSD could turn bearish again.

Therefore, we recommend purchasing daily PUT options at 1.0925 for EURUSD for a 20:00 GMT expiry time as we expect a continuation of the bearish trend. Any gains towards 1.0930 – 1.0900 level will likely see a bearish close towards the end of the day.

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.