EURUSD has remained firmly supported above 1.1730. Multiple attempts to break below this support have failed. The common currency remains well bid against the U.S. dollar and thus price action is expected to push to the upside in the near term.
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Today's binary trading is GBPJPY. The currency pair has been on a decline in the past few days but price action could see a near term retracement. We expect to see GBPJPY maintain some of the gains following a decline to 142.75 following which the currency pair could close higher on the day.
The U.S. nonfarm payrolls report for the month of July will be released the Bureau of Labor statistics today at 12:30 GMT. According to economists polled, today's data is expected to show that payrolls rose 181k for the month of July. This is slightly lower than June's 222k jobs.
GBPAUD remains strong to the upside especially against a weakening Australian dollar. But considering the volatility, technical analysis suggests a scope for a pullback in prices. Immediate support is seen at 1.6650.
GBPJPY price consequently posted declines, briefly falling to 145.40 before staying subdued. We expect to see an upside breakout in the near term, which could send GBPJPY higher as a result.
Recent data has shown that inflation has been steadily rising, suggesting that higher consumer prices are likely to come by. The ECB officials have been slightly hawkish on their outlook and thus the monetary policy is also expected to be hawkish.
Today's data is likely to remain weak, meaning that the U.S. dollar could remain subdued as a result. The housing market data is often seen as a leading indicator for the U.S. economy. Therefore another slowdown or a month with weak figures could further diminish the investor confidence in the U.S. economy.
Last week we saw that the UK's average earnings slowed to a pace of just 1.8%. This was down from 2.1% that was seen the month before. The difference between wages and inflation turned negative suggesting a squeeze on UK's household income.
The weaker than expected rise in inflation will of course keep the RBNZ back on the neutral-dovish path suggesting that New Zealand's interest rates or the overnight cash rate (OCR) will remain unchanged in the foreseeable future. NZDUSD has posted strong gains over the past few weeks rallying back to the resistance level of 0.7340.
Price action has been rallying strongly but we see a lower high forming yesterday. Therefore, we purchase daily PUT options at 0.7300 for a 20:00 GMT expiry time. Following the lower high that was formed, NZDUSD could be looking to retrace the gains made earlier. Therefore, we expect to see the currency pair closing lower on the day.
Amid the economic releases, the Fed speeches continue. Janet Yellen will be giving her testimony to the U.S. The preferred binary options trading signal recommendation is USDJPY. We expect to see price action continue to push lower with the eventual decline to 112.00.
Our preferred binary options trading recommendation for today is the EURGBP. The currency pair has been trading flat and broke out from the range of 0.8855 and 0.8840, yesterday. This bullish price action saw EURGBP rising to a fresh 8-month high as a result.
The reversal near the identified resistance level will signal that price action could likely post a correction in the near term. Support is seen at 113.36, which could be tested in the near term ahead of further gains thereafter. Therefore, PUT options are ideal at 114.35 as we expect to see USDJPY close lower for the day.
While the economic calendar today is a bit quiet, the trade balance and the Sentix investor confidence could add to the market sentiment. The EURUSD is our preferred binary options signal recommendation for today. The currency pair fell on Friday after briefly rallying to highs of 1.1438. We could expect to see price action continue to push to the downside.
Today's payrolls data will be important for the market as it could potentially shape the outcome of what the market thinks about the Fed's plans. A weaker than expected payrolls data, or a slip in the average hourly earnings could no doubt weaken the sentiment in the U.S. dollar even more.
The binary options trading recommendation for today is USDJPY. The currency pair was seen pausing in the rally after breaking above 113.00. We expect to see the U.S. dollar regain its momentum and as a result we look to purchase daily CALL options in USDJPY on the dip to 112.50 for a 20:00 GMT expiry time.
There is a strong chance that today's FOMC meeting will be hawkish and this could see the markets re-price the expectations for further tightening from the Fed as a result. Therefore, the past few weeks of declines in the U.S. dollar could very well be posting a recovery in the near term.
Therefore, USDJPY will be most likely looking to clues from the broad market theme compared to just the BoJ's core CPI data. However, a continued deterioration of consumer prices could keep the Japanese yen biased to the downside against the U.S. dollar.
Today's recommended binary option signal is EURUSD. Following last week's strong gains, the EURUSD is likely to see some consolidation if not a short term correction to the downside. EURUSD closed bearish on Friday which comes after three consecutive days of gains.
Today's GDP report covers the first three months of the year. Therefore it is unlikely to impact the markets much. The binary options trading signal is EURGBP. Following yesterday's close, we expect EURGBP to attempt to retrace the losses, therefore, we expect EURGBP to close higher on the day.