Call Options Preferable in EURUSD As Channel Support Weighs
Jul, 31st 04:23
The price of EURUSD inched lower on Friday, for the fourth consecutive day, to less than 1.1000 before the release of Eurozone Consumer Price Index (CPI) report for the month of July. The technical bias is bearish because of LL and LH in the previous wave on daily timeframe. The pair is expected to hold range till the release of CPI report
At the moment, the pair is being traded around 1.0945. It is expected to face a hurdle near 1.0990, the 50% fib level ahead of 1.1074, the channel resistance and then 1.1100, the confluence of psychological number as well as 38.2% fib level. The technical bias will remain bearish as long as the 1.1128 resistance area is intact.
On the downside, a support may be noted near 1.0877, the 61.8% fib level ahead of 1.0817, the channel support as demonstrated in the following daily chart. A break and daily closing below the channel support could incite renewed selling pressure, validating a dip towards the 1.0000, the parity level.
In next few hours, the EuroStat is due to release the Eurozone Consumer Price Index (CPI) report for July today. It is considered a main gauge for inflation. According to the median projection of different economists, the CPI remained 0.2% in July as compared to the same inflation in the same month of the year before. Generally speaking, higher inflation figure is considered positive for the economy thus a worse than expected actual outcome will be seen as bearish for EURUSD and vice versa.
Binary Options Trade Idea
Keeping the technical and fundamental analysis in view, buying the call options of the pair near channel support appears to be a good strategy.