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EUR/USD Signal - German manufacturing orders - 06 Feb 2017

Signal details
Entry Price: 
1.0775
Close Price: 
1.0750
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The euro is seen paring gains after the U.S. dollar weakened following a mixed and a lackluster jobs report on Friday. EURUSD surged on the back of the NFP report but failed to break free above 1.0800 and the current declines could be seen pushing the single currency lower. Earlier this morning, Germany's manufacturing orders data showed one of the strongest monthly gains in more than two years during December. Official data showed that total orders jumped 5.2% from a month ago with an increase in domestic demand and orders from the rest of the Eurozone.

However, the German data did not help to support the euro. From a technical outlook, the euro is looking to be far overbought and a technical correction is pending to $1.0600 in the near term. The support at 1.0700 is likely to hold out and could see a short term bounce in prices likely sending EURUSD back to 1.0775 – 1.0750 region. Later in the day, the Eurozone Sentix investor confidence data will be released and economists are expecting a decline to 16.7 from 18.2 previously. Given the above fundamental and technical outlook, PUT options are recommended for EURUSD near 1.0775 for a 21:00 GMT expiry time.

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.