Eurozone – German Preliminary GDP
On Friday, at GMT 6:00 a.m., the Destatis will release the quarter-over-quarter German Preliminary GDP figure, which measures the changes in the value of all products and services produced by the Germany economy. However, this figure is adjusted for inflation in order to provide a more accurate data.
Binary options traders consider the German GDP to be one of the most vital fundamental indicators of measure the production in the Eurozone economy, as German economy makes up a large part of the entire Eurozone economic activities.
Last quarter, the German preliminary GDP grew by 0.3% and the forecast for this quarter is currently set at a slightly higher rate of growth, at 0.5%.
Canada – Manufacturing Sales
Later, 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 Canadian manufacturers over the past month.
Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, binary options investors consider the manufacturing sales data to be a leading indicator of the Canadian economy.
In July, the Canadian manufacturing sales figure increased by 0.1% and the forecast for August is currently set at a rather optimistic, a 2.1% increase on a month-over-month basis.
Trade Recommendation for the EUR/CAD
Since June 29, the EUR/CAD has remained very bullish. However, after reaching the resistance level around 1.4450 on July 27, the EUR/CAD price has been trading within a tight range.
Although it tried several times to penetrate above the 1.4450 level in the last two weeks, the EUR/CAD price failed to do so.
Earlier today, the EUR/CAD price was once again tested the resistance level around 1.4450 but got bulls got rejected and the price has fallen around 140 pips since then. Currently, the EUR/CAD is trading below the intermediate uptrend line.
As the Canadian manufacturing sales are expected to increase by 2.1% by the end of the week, today, if the EUR/CAD price closes below this uptrend line, it would certainly signal additional bearishness over the next few days.
The next major support level for EUR/CAD would be around the 1.4250 level.
Under the circumstances, it is recommended that traders consider placing a PUT order for the EUR/CAD with their binary options brokers once the daily candle closes below the trend line.
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