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EUR/USD binary signal - U.S. Housing starts - 18 April 2017

Signal details
Entry Price: 
1.0640
Close Price: 
1.0733
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
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The markets will be returning to normalcy today after most of Europe was closed on Monday on account of the Easter Monday bank holiday. The economic calendar is still light though today with the U.S. data standing out. Information about the U.S housing starts, building permits, capacity utilization rate and industrial production numbers are all on the tap today which could heavily influence the U.S. dollar as a result.

Broadly put, economic data is expected to remain in the positive. Building permits are expected to rise 1.25 million, up from 1.21 million previously while housing starts are also expected to rise 1.25 million, slightly lower than 1.29 million posted in the previous month.

The capacity utilization rate and the industrial production numbers are tipped to come out slightly higher at 76.1% and 0.4% increase in industrial production. This data will be important as it could help in assessing the advance GDP numbers that will be coming out next week. A beat on the estimates or an increase from the previous month will no doubt help to support the U.S. dollar as a result.

With no other economic releases scheduled for today, the data from the U.S. will clearly stand out influencing the EURUSD currency pair.

The EURUSD has been volatile lately as the common currency comes under pressure ahead of this Sunday's French elections. In what is turning out to be a tightly contested poll, thus any gains in the common currency could be short lived, or even a surprise result in the first round could potentially send the single currency higher.

The recommended currency pair to trade binary options today is of course the EURUSD which has posted a rebound after price fell to the support level at 1.0600 initially. We expect that with support being established here, EURUSD has the scope to test 1.0700 initially with an ultimate aim to rally towards 1.0800 where there is a pending retest of the broken support level to be established as resistance.

Therefore, purchase daily CALL options in EURUSD at 1.0640 for a 20:00 GMT expiry time. The minor dip will focus on the upside rally in the currency pair.

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.