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EUR/USD Trading - GDP and Durable goods orders - 22 Dec 2016

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EUR/USD Trading chart 22 Dec 2016
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U.S. Q3 final GDP estimates to show a modest revision higher

The final revised GDP figure for the third quarter in the U.S. is due for release today at 13:30 GMT. Forecasts point to another modest revision higher to reflect a 3.3% quarterly GDP growth. This is higher than the previous two revisions and could be bullish for the U.S. dollar.

Forecasts on the durable goods orders are mixed

Besides the GDP figures, the durable goods orders data is also being released simultaneously. While the core durable goods orders is expected to rise 0.2%, the headline print is expected to show a decline of 4.9%. It would be the lowest since January 2016.

With trading already showing a mixed response on thin liquidity, today's economic releases from the U.S. could add to the noise amid a mixed outlook.

While durable goods orders are tipped to decline, the GDP is expected to rise once again. EURUSD has been trading flat with frequent bouts of whipsaw price action. However, given the strong uptrend in the U.S. dollar there is an increasing risk of a move in the EURUSD to the upside.

Besides the GDP and durable goods orders, other data points also include the weekly unemployment claims and the core PCE data all of which could see some volatility later today.

In the near term, EURUSD is likely to encounter the resistance zone of 1.0476 - 1.0463 region, which previously held up on a retest and sent the EURUSD to fresh 52-week lows. The current rally in EURUSD is likely to see another retest to this resistance level.

Support to the downside comes in at 1.0398 - 1.0389. There is scope for an intraday rally towards 1.0463 - 1.0476 resistance level.

How to trade binary

On the hourly chart, look for EURUSD to rally towards the resistance zone of 1.0476 - 1.0463 and purchase daily PUT's for a 21:00 GMT expiry time. EURUSD is likely to push lower and perhaps will be looking to close the day at 1.0398 - 1.0389 support level.

Asset: EUR/USD
Direction: Put
Target price: 1.0463
Expiry: 21:00 GMT

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.

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