EUR/USD Likely to Retrace After Finding Strong Support Near Multi-Year Pivot Zone

EUR/USD – Technical Analysis for Binary Options Brokers

Eurozone – German Flash Manufacturing PMI

Binary Mate

On Wednesday, at GMT 8:30 a.m., the Markit will release the German Flash Manufacturing PMI data, which measures the level of a diffusion index based on surveying around 500 purchasing managers in the country.

Binary options traders consider the Flash Manufacturing PMI figure to be a leading indicator of the German economic climate as purchasing managers usually has the insight regarding business conditions such as employment, production capacity and new bulk orders and inventory situation.

Last month, the German Flash Manufacturing PMI figure came out at 55.0 and the forecast for this month is currently set at 54.8.

United States – Core Durable Goods Orders

On Wednesday, at GMT 1:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure, which measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Binary options traders consider the US core durable goods orders to be the primary gauge of production situation in the economy, as an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future. Hence, it is one of the key leading indicator of the overall US economy.

Last month, the US core durable goods orders increased by 0.1% and the forecast for this month is currently set at an increase of 0.2%.

Trade Recommendation for the EUR/USD

EUR/USD - Binary Options Analysis - 21rd November 2016

Over the last one month, the EUR/USD price has fallen by around 730 pips and finally, found a strong support around the multi-year pivot zone near 1.0567 level.

As the US core durable goods orders figure is expected to increase and the German flash manufacturing PMI figure is expected to go down, the fundamental outlook for the EUR/USD would likely remain bearish this week. However, as the EUR/USD price fell very sharply over the last two weeks, there is a high probability that it would retrace a bit higher before falling further down. Hence, from a technical point of view, if the EUR/USD price breaks above last Friday’s high, which is at 1.0645, it would likely attract additional bullish momentum in the market.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the EUR/USD with their binary options brokers as soon as the price closes above the 1.0645 level on the daily time frame.

Top  US Binary Options Brokers to trade EURUSD

Top US Broker: BinaryMate

US Regulated Broker: NADEX

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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