Eurozone – German ZEW Economic Sentiment Index
On Tuesday, at GMT 9:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) will release its economic sentiment index for Germany, which measures the level of another diffusion index by surveying 275 German institutional investors and analysts in the country.
Germany makes up a large portion of the entire Eurozone economy and binary options traders consider the German ZEW economic sentiment index to be an extremely important economic indicator regarding the German economy. This is because investors are analysts tend to have the most updated perception regarding the German economy.
In June, the German ZEW economic sentiment index reading came out at 31.5 and the forecast for July is currently set a rather pessimistic reading, at 30.6.
Canada – Manufacturing Sales
On Wednesday, at GMT 12:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by the Canadian manufacturers over the past month.
Since manufacturers quickly react to changing market condition, a change in the manufacturing sales can act as a signal for future corporate spending and capital investment in the manufacturing sector. Hence, binary options investors consider the manufacturing sales data to be an important leading indicator of the overall Canadian economy.
Last month, the Canadian manufacturing sales figure decreased by as much as 2.1%, however, the forecast for July is set a growth figure of 0.4%.
Trade Recommendation for the EUR/CAD
Since forming the large bullish daily candle, that climbed over 400 pips, on June 29, the technical sentiment for the EUR/CAD has remained bullish. Last week, on Friday, the EUR/CAD price finally reached near the 0% Fibonacci retracement level from June 4.
Large-scale profit taking took place after the EUR/CAD reached near the resistance zone around 1.4162. As a result, a quick retracement pushed the price lower that ended up forming a bearish pin bar on Friday.
However, the low of this pin bar is yet to be penetrated.
If the German ZEW economic sentiment reading comes above 31, it would indicate a stronger German economy compared to what the binary options market is currently forecasting. Moreover, as the Greece made a comprehensive bailout deal with its creditors that would likely create some bullish momentum for the EUR/CAD this week.
Under the circumstances, if the EUR/CAD price closes above the high of the pin bar, at 1.4256, traders should place a CALL order with their binary options brokers. On the other hand, if the EUR/CAD price closes below the low of the inside bar, at 1.4050, they should consider placing a PUT order instead.
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