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EUR/USD Signal - Eurozone flash PMI - 21 Feb 2017

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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Markit will be releasing the flash manufacturing and services PMI numbers for the Eurozone countries today, including France and Germany, followed by composite PMI numbers for the Eurozone. Expectations point to a modest pull back in the flash manufacturing PMI to 55.0, down from 55.2 in January while flash services PMI is expected to remain unchanged. As long as there is no sharp deviation from the expected numbers, the euro is likely to remain muted to the news.

Price action has been choppy yesterday with lack of any clear fundamentals to go by. However, the U.S. dollar was seen rising earlier this morning which could indicate further weakness in the EURUSD. From a technical stand point, EURUSD is seen breaking down below 1.0600 support level on the intraday chart earlier today which was followed by a strong doji pattern later on. A modest reversal can be expected in EURUSD but the gains are likely to see prices hit the resistance near the support level of 1.0600, where resistance will be established.

Based on the above information, it is ideal to purchase daily PUT options near 1.0602 – 1.0600 resistance level as the bearish trend in EURUSD could be seen resuming potentially closing bearish for the day. Secondly, the daily chart shows the inside break formation and today’s price action breaking out to the downside, validating this view. Therefore, purchase PUT options at 1.0602 – 1.0600 for a 21:00 GMT expiry time.

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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.