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EUR/USD Signal - Germany PPI - 20 Feb 2017

Signal details
Entry Price: 
1.0635
Close Price: 
1.0613
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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Germany producer prices data released earlier this morning showed that prices for industrial products rose the most since March of 2012. The data underpinned the fact that inflation was seen making a comeback in the Eurozone, albeit on a mixed note. Official data from Germany's statistics office, Destatis showed that producer prices rose 2.4% compared to the same month a year before and increased from December's gain of 1.0%.

The data was seen as a positive for the euro which has been attempting to recover after giving up its gains last week on Friday. However, in the near term, EURUSD could be seen facing resistance near 1.06350 - 1.0650 which was breached by a strong bearish candle on Friday. The current retracement could therefore see EURUSD retest this broke support level to establish resistance following which further declines to 1.0600 could be expected.

Therefore, purchasing daily PUT options near 1.0635 for a 21:00 GMT expiry is the day’s binary option trading idea.
Later in the afternoon, the Eurozone consumer confidence data will be coming out. Economists polled expect to see consumer confidence index remain unchanged at -5.0 from the previous month, however there could be scope for a surprise as recent upbeat figures for most of the eurozone and Germany could mean that consumer confidence could start increasing once again.

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.