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EUR/USD binary signal - ECB President Draghi and Fed's Yellen speech - 07 Nov 2017

Signal details
Entry Price: 
1.1617
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
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The economic calendar today will see two main items standing out. This includes the ECB President Mario Draghi's speech which is scheduled at 0900 GMT and the Fed Chair Janet Yellen will be speaking later in the day at 1930 GMT. Both the speeches will stand out as the EURUSD could be expected to come under pressure.

Besides the speeches from the heads of the two central banks, the economic data over the day will see the release of the retail sales figures from the Eurozone. The speeches from the respective central bank heads will gain more prominence especially with the December month drawing closer.

The Federal Reserve is expected to raise the short term interest rates in December This was evident from the fact that the Fed in its latest November monetary policy stated that rate hikes will continue to rise at a gradual pace.

For the ECB, with recent economic data showing a mixed picture, the ECB President Mario Draghi could be seen taking a cautious stand. As a result, the risk to the downside increases for the euro currency. The ECB had already signaled that it expects inflation to slip in the coming months.

Consumer prices were already projected to fall around December this year and early next year. As a result, this falls consistently in line with the ECB's decision to extend QE for another nine months next year. The outlook for the ECB is also expected to turn bearish especially as the central bank will be releasing its quarterly staff economic projections at the December ECB meeting.

Today's binary options signal is EURUSD, the currency pair could be seen coming under pressure as both the central bank heads speak on monetary policy.

EURUSD has remained trading in a range since the ECB meeting held in October. However, the outlook in the near term has turned to the downside. Therefore, we are looking to purchase daily PUT options at 1.1617 for a 21:00 GMT expiry time. We expect EURUSD to briefly test the resistance level before closing lower on the day.

binary options signal EURUSD 07 Nov 2017

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.