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EUR/USD binary signal - ECB Monetary Policy meeting - 26 Apr 2018

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Signal details
Entry Price: 
1.2180
Close Price: 
1.2103
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
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The European Central bank will be holding its monetary policy meeting today at 11:45GMT. The central bank is expected to hold the key interest rates unchanged at today's meeting including the quantitative easing program at the pace of 30 billion euro per month.

The central bank will be holding a press conference at 12:30 GMT today. The ECB President, Mario Draghi is expected to maintain a neutral tone at today's meeting. Following the recent downtick in consumer prices and a remarkable slowdown in the business activity in the Eurozone, the central bank is expected to remain cautious.

Investors will be closely watching the language of the ECB's monetary policy statement. The central bank removed dovish language from the monetary policy statement as the previous meeting. This led the markets to expect to see further tightening from the ECB in the coming months.

Growth in the Eurozone was seen slowing after accelerating in the final quarter of last year. The slowdown comes amid significant global trade risks and could also be moderation following various levels of business activity hitting fresh highs.

With inflation still stubbornly below the ECB's 2% inflation target rate and with core CPI just at 1.0%, the ECB's meeting could be neutral to dovish. No policy changes are expected and any hawkish language in the ECB's monetary policy statement could be offset during the press conference.

Based on the above today's binary options trading signal is EURUSD. The currency pair was seen posting strong declines over the week. However, we expect to see a near term rebound in prices and we would purchase daily CALL options in EURUSD at 1.2180 for a 21:00 GMT expiry time.

We expect to see the euro currency posting a short term rebound and thus closing higher on the day.

binary options signal eurusd 26 apr 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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.