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EUR/USD Signal - Germany preliminary CPI - 30 Jan 2017

Signal details
Entry Price: 
1.0710
Close Price: 
1.0694
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
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Preliminary inflation data for Germany is expected to be released today for the month of January. The data is forecast to remain mixed with the month over month inflation change expected to show a 0.5% decline but on a yearly basis, flash CPI figures are forecast to show German inflation rising to 2%. This would see inflation accelerating from December's 1.7% annual inflation rate. A beat on the estimates could potentially put further pressure on the ECB which is targeting an inflation rate of 2% for the entire Eurozone. Later in the week, we will see the preliminary CPI estimates for the Eurozone as well.

EURUSD gapped higher this morning but the bearish bias remains based on the weekly doji close last week which came after nearly four weeks of gains. This could indicate a correction to the downside. Therefore, purchase daily PUTs near 1.0710 for a 21:00 GMT expiry time as we expect EURUSD to push lower towards 1.0600.

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.