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EUR/USD Signal - US Productivity - 10 Aug 2016

Signal details
Entry Price: 
1.1120
Close Price: 
1.1174
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 3 ratings

Since the beginning of the day the EUR/USD is marking a significant increase and is currently trading around the 1.1150 area. Considering that yesterday’s highs were in the 1.1120 sector, the move is pretty substantial. The reason for that is the drop in US nonfarm productivity that showed that it dropped at a 0.5% rate for the Q2 (period April-June).

This data led to a drop in US interest rates, which trickled down to the dollar. With all that in mind the most appropriate thing to do is to evaluate a target price of 1.1120 due to the fact that probably in this area there would be a lot of buyer’s interest (because of yesterday’s high there). We will be buying daily calls at the 1.1120 level heading into the 20:00 GMT expiration.

Comments

PauloAlx's picture

Hi Hamilton, I have been studying some signals and in this particular case I cant understand why you consider this ITM.
In fact the day had finished above the 1.1120 but what I am not understanding is that the signal was post at 8.36 GMT and at that time price was already above 1.1120 and it never came into it again, so, we traders were not be able to open a position on 1.1120 (price crossed the target around 00.00GMT I think)
I am sorry if I missed something, and please tell me if I am doing something wrong on my analysis but I am just trying to understand very good this signals to trade some in the future.
Tank you

PauloAlx
Toni H.'s picture

Yes, did not dropped to 1.1120 but buying call at current levels 1.1150 would be ITM anyway.

Toni H.
wiesbadener's picture

That you have to give a tip after the big eruption ever. So I can not agree in time.

wiesbadener
Toni H.'s picture

what you mean?

Toni H.

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.