The EUR/USD has resumed its move to the downside after forming a large bearish outer band (BEOB).

USA - Consumer Confidence Index

Tomorrow, at 3:00 p.m.,  The Conference Board has published its Consumer Confidence Index which measures the level of a composite index generated from data based on the regular monthly household household survey.

A higher consumer confidence index usually indicates future consumer spending, which can have a significant impact on overall economic conditions. Hence, binary options traders view this type of survey indicator as a leading indicator.

Last month, the Consumer Confidence Index came in at 97.3. This month, expectations for the index reading were slightly lower, at 97.2.

Eurozone - German retail sales

On Wednesday, at 07:00 AM GMT, Destatis . will  Announcing the monthly German retail sales data, which measures the change in the total value of sales at the retail level in the country. Since the German economy constitutes a large part of the eurozone economy in general,  Retail sales may represent a major measure of consumer spending and consumer confidence, and binary options investors consider this indicator as an important fundamental indicator. Last month, the German retail sales figure decreased by 0.1% and this month it is expected to increase by 0.5%.

Trading recommendations for the EUR/USD currency pair (EURUSD)

EURUSD binary-options

After failing to break below the important psychological pivot zone near 1.0965, the EUR/USD currency pair started rebounding towards the descending trend line. On July 31, the price of the EUR/USD currency pair broke above the descending trend line and crossed above the resistance area near 1,1150.

Last Friday, the EUR/USD formed a broad external bearish band (BEOB), which indicates that the price of the EUR/USD is about to resume the downtrend. Earlier in the day, the EUR/USD had breached below the bottom of the bearish outer band, confirming the change of trend.

As German retail sales are expected to increase, and US consumer confidence is expected to decline, the fundamental outlook for the EUR/USD will remain bullish. However, forming a large bearish band (BEOB) will attract and lead to ample bearish momentum to push the EUR/USD price below the 1,1150 level in the next few days.

Under these circumstances, it would be advisable for binary options traders to consider placing a sell order for the EUR/USD currency pair with binary options brokers as soon as the price closes below the 1,1150 level on the daily chart.

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Ahmed A.
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