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EUR/USD Signal - German Ifo - 19 Dec 2016

Signal details
Entry Price: 
1.0425
Close Price: 
1.0399
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
5/5 of 2 ratings

The economic calendar is light today with no major events schedule, making the German Ifo business climate the only economic release of interest. It is not a high impact event but given the lack of data today, it could potentially shift the market sentiment in the euro. In the previous release, this forward looking indicator signaled that German businesses were unfazed by the developments in the U.S. presidential elections indicating optimism. The German Ifo business climate fell slightly to 110.4 in November after October's increase to 110.5 which was the highest in over two years. Following the moderation in November, today’s Ifo is forecast to rise to 110.7, which will a new high reading in the index.

The U.S. dollar has been showing signs of weakness since Friday and following the initial gains on the Fed’s rate hike, the correction in the dollar is long overdue. EURUSD has fallen to lows of 1.0400 on Friday but managed to lift off steadily from this level. Purchasing daily CALLs on a retest to 1.0425 will be ideal for a 21:00 GMT expiry time. After strong weeks of declines, the euro is overdue for a correction which could potentially see price retest 1.0600 at the very least. Therefore, look to purchase EURUSD call options at 1.0425 for an end of day expiry.

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.