EUR/USD – Technical Analysis for US Binary Options
- 1 EUR/USD – Technical Analysis for US Binary Options
- 2 Top US Broker: BinaryMate
- 3 US Regulated Platform: NADEX
Eurozone – German Preliminary Consumer Price Index (CPI)
On Tuesday, the Destatis will release the month-over-month German Preliminary CPI, which measures the change in the price of goods and services bought by German consumers over the past month.
Since the German central bank primarily uses the CPI to measure inflation, it has profound impact on the German economy. Moreover, as the German economy makes up a large portion of the overall Eurozone economic activity, the German CPI also influences the valuation of the Euro against other major currencies. Hence, binary options traders consider the German Preliminary CPI to be a leading indicator of the Euro.
Last month, the last German preliminary CPI (m/m) indicated that there was a 0.0% change in price and the forecast for this month is that there was a -0.1% decrease in the price level during the past month.
United States – Institute for Supply Management (ISM) Manufacturing PMI
On Thursday, at GMT 3:00 p.m., the Institute for Supply Management will release its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.
Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, binary options investors can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.
Last month, the ISM manufacturing PMI for the United States came out at 54.8 and the forecast for this month is set at 54.7.
Since breaking above the downtrend line on April 23, the EUR/USD has climbed up by around 400 pips and found resistance near the 1.1250 level. Last week, the EUR/USD made several attempts to break above the 1.1250 level, but so far remained range bound and failed to close above this level, and appearing to approach the next support level near 1.1140.
As the German Preliminary Consumer Price Index is set to decline by 0.1% and the recent comments from the US President has create a possibility of a trade war with Eurozone, we believe the fundamental outlook for EUR/USD would likely remain bearish this week. Furthermore, the US ISM Manufacturing PMI reading is expected to come very close to last month’s reading of 58.8, which supports the bearish thesis.
Under the circumstances, if the EUR/USD price penetrates below the support level around 1.1140, it would likely to find additional bearish momentum in the market. Hence, US binary options traders should look out for trading opportunities below this major support level around 1.1140.
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