Weekly Top 5 Binary Options Analysis and Forecast 12/30/2013-01/03/2014

The Must-Watch Top 5 Events of the Week

 

1. US Pending Home Sales

12/30/2013 – Monday at 3:00 pm GMT 

 

What will it affect: USD, US stocks and indices

Forecast: 1.1% from the previous -0.6%

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

 

Why traders care and what to expect: The indicator measures the change in the number of houses under contract to be sold but waiting for the final, closing transaction. A higher value suggests a thriving economy, with people willing to spend money on a house.

 

Directional bias:  UP if the actual value is higher than 1.1%

                                 DOWN if the actual value is lower than 1.1%

 

How I would trade this event: I would trade hourly Puts on USD/JPY if the value doesn’t meet expectations.

 

 

 

2. US Consumer Confidence

12/31/2013 – Tuesday at 3:00 pm GMT

 

What will it affect: USD, US stocks and indices

Forecast: 76.5 from the previous 70.4

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

 

Why traders care and what to expect: Consumer confidence is indicative of future consumer spending which in turn represents a major part of the entire US economic activity. The indicator is a survey of about 5,000 households regarding job availability and current and future economic conditions.

 

Directional bias: UP if the actual value is higher than 76.5

                                 DOWN if the actual value is lower than 76.5

 

How I would trade this event: Most markets are closed and the ones that are open will suffer from low volume and alternating volatility due to New Year’s Eve. I will not trade.

 

 

 

3. New Year’s Day

01/01/2014 – Wednesday

 

What will it affect: All assets

Forecast: The market stops

Where to keep an eye on the event: On high ground so the fireworks are visible

 

Why traders care and what to expect: Most brokerages are closed on New Year’s Eve and the 1st of January and trading will be probably the last thing on traders’ mind.

 

Directional bias: Wobbly direction, depending on how many drinks you will have

 

How I would trade this event: I can’t trade such events

 

                                        

 

4. US Unemployment Claims

01/02/2014 – Thursday at 1:30 pm GMT

 

What will it affect: USD, US stocks and indices

Forecast: 334K from the previous 338K

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

 

Why traders care and what to expect: The indicator shows the change in the number of people looking for unemployment related benefits during the previous months and it’s a gauge of economic health. Jobs are easily available when the economy is thriving and that’s why better than expected (lower) numbers are considered bullish.      

 

Directional bias:  UP the actual number is lower than 334K

                                  DOWN if the actual number is higher than 334K

 

How I would trade this event: I would trade a 15 minute Put on EUR/USD if the actual number will be lower than 330K

 

 

 

5. US Manufacturing Purchasing Managers’ Index 

01/02/2014 – Thursday at 3:00 pm GMT

 

What will it affect: USD, US stocks and indices

Forecast: 56.8 from the previous 57.3

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

 

Why traders care and what to expect: This is a survey based on the opinions of about 400 purchasing managers from the manufacturing sector. They are asked to rate business conditions and usually values above 50 indicate optimism.

 

 

Directional bias:  UP the actual number is higher than 56.8

                                  DOWN if the actual number is lower than 56.8

 

How I would trade this event: I would buy a four hour call on S&P500 if the number will be higher than expected.

 

              

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Keep Tracking of the Upcoming Binary Options Trading  Events on CommuniTraders Social Trading Platform!

 

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.

Note 2: The market will probably have irregular movement for the entire week due to New Year’s Eve and New Year’s Day. The events mentioned will have mixed and/or hard to predict impact.

 

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