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EUR/USD binary signal - U.S. ISM non-manufacturing PMI - 05 Feb 2018

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Signal details
Entry Price: 
1.2450
Close Price: 
1.2388
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 5 ratings

The Institute of Supply Management (ISM) will be releasing the monthly non-manufacturing data today at 15:00 GMT today. The data will cover the non-manufacturing sector, namely the services sector. According to the economists polled, the non-manufacturing activity is expected to accelerate, rising at a pace of 56.5 for the month of January.

In December, non-manufacturing activity was seen rising to 55.9. This comes after the sector slowed in the previous month. Non-manufacturing activity reached a peak in October, rising to 60.1 during the month.

The recent tax changes to the U.S. economy and the general optimism in the global markets is expected to reflect with increased activity in the non-manufacturing sector. Investors will be watching the numbers as it could potentially add weight to the fact that the U.S. economy has been expanding at a steady pace especially in the first month of the year.

At the same time, Markit will also be releasing the final services PMI. Data is forecast to remain steady, rising at a pace of 53.3 in January, the same pace as which services sector expanded in the previous month.

Based on the above, today's binary options signal is EURUSD. The currency pair was seen giving up the gains after failing to reach the previous resistance level. We expect to see the short term weakness continuing in today's session.

Therefore, we are looking to purchase daily PUT options at 1.2450 for a 21:00 GMT expiry time. We expect EURUSD to post an intraday retracement to the upside before reversing to close lower on the day.

binary options signal eurusd 05 feb 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.