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EUR/USD Signal - Eurozone flash GDP - 14 Feb 2017

Signal details
Entry Price: 
1.0650
Close Price: 
1.0575
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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EURUSD fell to the support level at 1.0600 yesterday and price action is showing signs of bouncing off this support level earlier today. Economic releases this morning saw the German GDP figures for the fourth quarter coming out. Data showed that quarterly GDP increased 0.4% pushing the annual GDP growth rate to 1.9%.

Meanwhile, inflation figures released simultaneously also showed that headline consumer prices edged higher to 1.9%, standing just below the ECB's 2.0% inflation target rate. The data was positive for the euro but price action has remained muted so far. Later in the day, the Fed’s Janet Yellen will be speaking as part of her 2-day testimony which could be hawkish for the U.S. dollar and the Eurozone flash GDP estimates are also expected to be released.

Resistance in EURUSD is seen at 1.0640 – 1.0650 level which could be tested ahead of Yellen’s testimony to Congress. Therefore, purchasing daily PUT options near 1.0640 – 1.0650 will be ideal for a 21:00 GMT expiry time as we expect the single currency to resume its bearish trend in the near term outlook.

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.