EUR/USD Climbs Higher Amid Positive Forecast About Eurozone Money Supply

United States – Existing Home Sales

On Wednesday, at GMT 3:00 p.m., the US National Association of Realtors released the existing home sales number. It is an annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.

The sale of an existing home usually has a wide-spread positive ripple effect in the local economy. So, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options investors consider the existing home sales number to be an important data as it tends to have a considerable market impact.

Last month, the US existing home sales figure came out at 5.81 million. The forecast for this month is currently set at 5.72 million.

Eurozone – M3 Money Supply

On Friday GMT 9:00 a.m., the European Central Bank will release the year-over-year M3 money supply figure. It measures the changes in the total quantity of issues currency in the greater Europe. The M3 consists of all hard currency in circulation as well as the bank deposits, including in the central bank.

As the M3 money supply increases, it makes funds available for investments. However, an excess money supply can also lead to inflation and liquidity trap in the economy. Hence, the European Central Bank often adjust their interest rate policy based on the current M3 money supply situation. As a result, the quantity of the M3 can act like a leading indicator of the future direction of the economy.

Last month, the Eurozone M3 money supply increased by 4.9%. This month the forecast is set at a 4.9% increase as well.

EUR/USD Forecast

Since forming a small bullish pin bar on November 7, 2017, the EUR/USD remained highly bullish. Over the last two months, it climbed up by around 755 pips. Last week, the pair reached the 1.2290 level and found a strong resistance. Currently, the EUR/USD is trading just below the 1.2290 level.

The US existing home sales figure is expected to come lower than last month to 5.72 million. On the other hand, analysts are expecting the Eurozone M3 money supply to increase same as last month at 4.9% We believe it would set a bullish fundamental outlook for the EUR/USD this week. Therefore, if the EUR/USD closes above the resistance near 1.2290, it would likely attract additional bullish momentum in the market.

Hence, US binary options traders should look out for trading opportunities above this major resistance level around 1.2290.

BTC/USD Forecast

Since breaking below the uptrend line on December 19, 2017, the BTC/USD has remained bearish. Over the last month, it has lost almost 50% of the market capitalization based on the highest peak of 2017. In fact, after the Korean Financial Services Commission (FSC) announced regulate cryptocurrencies via a new system, the overall bearish momentum accelerated. Currently, the bitcoin appears bearish, but found near the 10,200 level.

Given the strong bearish momentum in the market, if the bitcoin price closes below the 10,200 level, it is likely to attract additional sellers. As a result, the price could drop much lower in the coming week.

Hence, US bitcoin traders should look out for trading opportunities below this major support level around 10,200.

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