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EUR/USD Signal - U.S. Consumer Confidence - 28 Mar 2017

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Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The U.S. consumer confidence index data is due for release today by the Conference Board (CB). Economists polled are expecting to see a headline print of 113.9, slightly lower than 114.8 registered the month before. The CB consumer confidence index is a leading indicator that is based on the monthly survey of nearly 5000 households where the opinions on the economy are registered.

With the U.S. economic calendar relatively light today, the CB consumer confidence data could turn out to be a market mover, especially where the EURUSD currency pair is concerned. The common currency rose to a 4-month high earlier this week but pulled back modestly by Monday's close.

EURUSD posted strong gains as the currency pair gapped higher on Monday. The euro strengthened amid a weaker U.S. dollar and also the fact that the regional German elections held showed Chancellor Angela Merkel's party taking a majority lead, which helped to support the common currency.

EURUSD briefly rallied to 1.0900 yesterday but pulled back later by end of the day. The currency pair is seen attempting to retest this level where resistance has been firmly established. With EURUSD already posting four weekly consecutive gains, the currency pair is showing signs of exhaustion and could risk posting a correction in the near term. Furthermore, later this week the UK is expected to trigger Article 50, which could post a major event risk for the common currency.

Therefore, the binary options trading signal for the day is to purchase daily PUT options near 1.0850 for an end of day expiry as we expect to see a pull back in the second attempt in EURUSD rallying towards 1.0900 price level. Besides the CB consumer confidence data, focus will also be on the FOMC member, Kaplan who is the governor of the Dallas Federal Reserve.

Fed members have so far managed to keep up the hawkish pressure on more U.S. rate hikes and this could possibly push EURUSD lower as well. Considering the above it is recommended to buy daily PUT options in EURUSD at 1.0850 for a 20:00 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. 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. All risks and coasts associated with online trading are your responsibility.