The Euro is preparing for another leg higher after recent losses
Despite lower than expected data from Germany, reflecting falling confidence in the future course of the economy, we think that a large portion of the bad news for the Euro have already been reflected in the current market price in the EUR/USD binary options forex pair.
We are looking at some serious moves in the coming days as we await key data on US New Home Sales later today. While the consensus forecast is for that data to show a rise of 433,000 units on an annualized basis, our view does not coincide with these high expectations.
We think that the data later today could be the turning point for the US dollar and are looking for opportunities to buy daily calls on the EUR/USD binary options forex pair. The first level which we have identified on our charts is around 1.2840.
With current prices hovering around 1.2850, this would be the first level to pay close attention to. While it is a minor support with the much larger lying in the 1.2815-20 area we would be keen to buy daily calls after it is tested.
Adding to the sentiment to the upside we are seeing levels in the area around 1.2866. So if we see an hourly close above 1.2866 we would be buying daily calls for tonight's expiry targeting a move towards the low 1.29's and above.
On the downside we would be looking for the perfect buy at 1.2815, but risks will increase if we get an hourly close below 1.2810. In that case the next move in the pair could unleash another leg to the downside. This is why for those of you who are less risk tolerant we would only recommend buying daily calls above 1.2866 and around 1.2815.