Weekly Top 5 Binary Options Analysis and Forecast 12/16-20/2013

The Must-Watch Top 5 Events of the Week

 

1. ECB President Mario Draghi Testifies

12/16/2013 – Monday at 2:00 pm GMT 

 

What will it affect: EUR, DAX

Forecast: no forecast is announced for this type of event

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX, ECB Official website

 

Why traders care and what to expect: All public speeches of ECB President have the potential to be a strong market mover but this testimony before of the European Parliament is even more important because Mario Draghi will speak about the monetary policy and economic conditions.

 

Directional bias:  UP if the President has a hawkish attitude

                                 DOWN if the President has a dovish attitude

 

How I would trade this event: If a strong move is triggered I will trade once his testimony is over.

 

 

 

2. German ZEW Economic Sentiment

12/17/2013 – Tuesday at 10:00 am GMT

 

What will it affect: EUR, DAX

Forecast: 55.3 from the previous 54.6

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory

 

Why traders care and what to expect: The importance of this survey comes from the fact that it is derived from the opinions of professional German investors and analysts. They are better informed on the fluctuations of the market because of their job thus their opinion weighs more.

 

Directional bias: UP if the actual number is higher than 55.3

                                 DOWN if the actual number is lower than 55.3

 

How I would trade this event: I would buy an hourly Put on EUR/USD if the value won’t meet expectations.

 

 

 

3. BoE Governor Mark Carney Testifies

12/17/2013 – Tuesday at 3:30 pm GMT

 

What will it affect: GBP, FTSE

Forecast: no forecast is announced for this type of event

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory

 

Why traders care and what to expect: The Governor will testify before the House of Lords Committee in London. His speeches are always important (especially testimonies) and must be regarded as a potential market mover.

 

Directional bias: UP if the Governor has a hawkish attitude

                                  DOWN if the Governor has a dovish attitude 

                 

How I would trade this event: I don’t trade such events. Whipsaws or sharp reversals are very likely.

 

                                        

 

4. US Federal Funds Rate

12/18/2013 – Wednesday at 7:00 pm GMT

 

What will it affect: USD, US stocks and indices

Forecast: unchanged from the current 0.25%

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory

 

Why traders care and what to expect: Although the rate is not expected to change, at the same time the FOMC will release the Economic Projections, containing a 2-year outlook and the Rate Statement containing details about the conditions that influenced their votes. Half an hour later a Press Conference will be held, which is another reason for increased volatility.  

 

Directional bias: UP if the Rate is increased or the other events are generally hawkish

                                   DOWN if the Rate is decreased or the other events are generally dovish

 

How I would trade this event: I would trade only after the events are over and a clear direction is established.

 

 

 

5. Bank of Japan Monetary Policy Statement 

12/20/2013 – Friday at 01:00 am GMT

 

What will it affect: JPY, Japanese stocks and indices

Forecast: no forecast is announced for this type of event

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, Daily FX

 

Why traders care and what to expect: The Statement offers insight into the Bank’s economic outlook and on the reasons that influenced the latest rate decision but more importantly, it offers possible hints about future monetary direction.

 

Directional bias:  UP the Statement contains a positive outlook

                                  DOWN if the Statement contains a negative outlook

 

How I would trade this event: I would buy a four hour Call on USD/JPY is the statement is not extremely hawkish.

 

                 

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Note: The times, dates and values can change during the week. Also, different sources sometimes show different values. Keep an eye on the mentioned financial websites for any modifications.

 

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