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EUR/USD binary signal - U.S. Pending home sales - 28 Jun 2017

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Entry Price: 
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Expiry Time: 
20:00 GMT
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The U.S. pending home sales data will be released today by the National Association of Realtors (NAR) at 1400 GMT. According to the economists polled, the pending home sales data in the U.S. is expected to rise 0.9% on a month over month basis in May.

In April, pending home sales fell 1.3%. This decline marked a second consecutive month on a year over year basis. The pending home sales data which is forward looking indicator showed that the pace of pending sales of U.S. homes was slowing.

The index is currently down 3.3% lower compared to a year ago and marked the first year over year decline since December 2016. Housing data is considered to be one of the important indicators of the health of the economy.

Earlier this week, the durable goods orders data showed another month of decline on the headline durable goods which fell 1.1%. The decline in durable goods was more than expected and accelerated from April's 0.5% decline.

On the housing side, the decline continued to surprise analysts. The weak pace of activity was attributed to the significantly weak supply levels which have led to a decline in the affordability conditions.

Inventory levels of pending home sales were also falling, down 9% already compared to a year ago. However, analysts are certain that it is too soon to conclude any weakness in the overall economy. The outlook remains positive with the chief of the NAR suggesting that pending home sales will rise 3% on the year by end of December 2017.

Regardless, in the short term, the weakness in the housing data could be seen with further declines coming for the U.S. dollar. Based on the above, the recommendation for today's binary option signal is EURUSD.

The EURUSD has managed to break past the resistance at 1.1300. This suggests that in the near term, price could continue to the upside. We would watch for a dip to 1.1300 and purchase daily CALL options for 20:00 GMT expiry time.

Following a decline to 1.1300, EURUSD can be expected to continue to push higher on 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.