EURUSD – Binary Options Technical Analysis
Eurozone – German ZEW Economic Sentiment
Tomorrow, at GMT 10:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) will release its German economic sentiment index, which measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts.
Since the professional investment community, investors and analysts have the latest data; their reflection about the economy tends to be the most accurate. Therefore, binary options investors consider the ZEW’s German economic sentiment index to be a leading indicator of the entire Eurozone economy. This is because the German economy is one the most important driving forces behind the Euro currency.
Last month, the ZEW German economic sentiment came out at 0.5, and this month, the forecast is set at an improved figure, 4.2.
United States – Unemployment Claims
On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.
Binary options traders consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 249,000 and the forecast for this week is currently set at a slightly higher figure, at 252,000.
Trade Recommendation for the EURUSD
Since breaking above the uptrend line on the first week of August, the EURUSD price has mostly remained range bound between the 1.1125 and 1.1350 levels. Last week, the EURUSD once again tested the support around 1.1125 level, but failed to close below it.
As a result, the retracement move produced a large bullish pin bar and so far, the EURUSD price has not broken above the high of this pin bar from last Thursday.
This week, the US unemployment claims figure is expected to come out slightly better than last period, but the forecast for German ZEW economic sentiment would likely have a greater impact on the market. Hence, we believe the fundamental outlook for the EURUSD would likely remain bullish.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the EUR/USD with their US binary options brokers as soon as the price closes above the 1.1205 level on the daily time frame, which is the high of last week’s bullish pin bar.
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