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EUR/USD Forecast 31 Mar 2016

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EUR/USD Forecast 31 Mar 2016
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The pair EUR/USD waits for Eurozone Consumer Price Index data

Yesterday the pair EUR/USD tried to strengthen on the soft Janet Yellen comments and positive data on consumer price index in Germany. The pair could reach a high of 1.1365.

However, ADP published positive data. Indicator went below the previous one, but exceeded the forecast: 200K vs. 199K forecast. As we know, the ADP is a harbinger of NFP. If ADP shows a good value, we can expect positive nonfarm payrolls data on Friday.

Today, Germany will present data on unemployment change and the unemployment rate, which is expected unchanged. Later we will get data on Eurozone Consumer Price Index, which is expected to improve from -0.2% to -0.1%.

The US traditionally is to publish data on jobless claims.

The pair is trading in the range of 1.1287 - 1.1355. If today we get positive Eurozene data, the pair EUR/USD will try to climb to the top of the range.

How to trade

We would buy CALL options if the pair EUR/USD rises above the level of 1.1338.

Asset: EUR/USD
Direction: CALL
Target price: 1.1338
Close price: 1.1378
Expiry time: 20:00 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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