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EUR/USD Signal - Germany WPI - 13 Feb 2017

Signal details
Entry Price: 
1.0635
Close Price: 
1.0595
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
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It is a slow trading day today with no major market releases of importance. In the early European trading session, the German wholesale price index data was released. Official records showed that selling prices in the wholesale trade increased 4.0% in January 2017 compared to a year ago. On a month over month basis, wholesale prices increased 0.8%. The annual rate of increase was a sharp jump from 0.8% previously in December 2016. The data suggests that inflationary pressures are creeping into consumer prices.

Germany's inflation has already posted a strong increase and further gains are likely led by the increase in the WPI data alongside higher oil prices. EURUSD has fallen to lows just above 1.0600 but there is a strong expectation of a rebound to the upside. The 1-hour chart shows the inside bar being formed and a break out above 1.0635 will signal a continuation towards 1.0730 at the very least. Therefore, purchase daily CALL options at 1.0635 for a 21:00 GMT 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.