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EUR/USD binary signal - Draghi Speech - 26 Feb 2018

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Expiry Time: 
21:00 GMT
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The ECB President, Mario Draghi will be speaking today at 14:00 GMT. Draghi will be testifying to the European Parliament in Brussels and it is likely that the central banker will be quizzed on the ECB's monetary policy actions as well. Draghi's speech could have some implications for the euro currency as a result.

Investors will be focusing on what the ECB President has to say on monetary policy and forward guidance. The next ECB meeting is due in early March. The central bank will be releasing its quarterly economic projections as well during the meeting. For the moment, no changes are expected from the central bank at the March meeting.

Last week, the ECB's meeting minutes from January were released. In a stark contrast, the minutes showed that policy makers did not want to make any changes to the central bank's forward guidance. Members of the policy making committee expressed concerns that it would be too premature to tweak the language.

This comes in stark contrast to the minutes from the December meeting released earlier in January. Back then, policy makers remained upbeat and wanted to slowly tweak the language of the ECB's forward guidance. Members, back then felt that the improving economic conditions in the Eurozone meant that the central bank should start to lead the markets towards policy normalization.

Based on the above, today's binary signal is EURUSD. The currency pair was trading weak and with price closing below the support near 1.2330, we expect further declines. Therefore, we are looking to purchase daily PUT options in EURUSD for 21:00 GMT expiry time at 1.2330 as we expect the EURUSD to close weaker on the day.

binary options signal eurusd 26 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.