EUR/USD Finds Support near Key Pivot Zone that Offers an Opportunity for a PUT Trade

United States – Building Permits

Today, at GMT 12:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, binary options traders consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.17 million building permits were issued and this month, analysts are expecting the figure to come out around 1.16 million.

Eurozone – German Flash Manufacturing PMI

Later in the week, on Friday, at GMT 7:30 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 investors 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 52.3 and the forecast for this month is currently set at 51.8.

Trade Recommendation for the EUR/USD

EURUSDDaily

Last week, the EUR/USD managed to penetrate and close above the important psychological resistance level, 1.1435. However, the bullish move failed to materialize and the EUR/USD produced a bearish outside bar (BEOB) the next day. So far, the EUR/USD price has fallen around 125 pips from the 1.1435 level.

As the US building permits and German manufacturing PMI figures are expected to come out close to their last month’s figures, the overall fundamental outlook for the EUR/USD would likely remain neutral and we may see lots of range bound price action this week.

However, from a technical point of view, the EUR/USD offers a good PUT trading opportunity as it is trading near an intermediate support level.

Under the circumstances, it would be recommended that traders consider placing a PUT order for the EUR/USD with their binary options brokers, once the price closes below yesterday’s low, which is at 1.1305.

However, since it is very close to the round number 1.1300, conservative traders may want to wait for the price to close below it, as round figures often acts as a major support level. In that case, it would recommend that they place their PUT order after the price closes below the 1.1285 level.

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