The Euro downside still open, is there more steam in the engine though?
With the Euro having lost value for seven weeks in a row, how far lower can we still go from current levels around 1.3128? The answer is not that simple - looking at the technical picture we are clearly seeing that the pace of the decline in the single currency has not slowed down during the past two weeks.
With the tensions in Ukraine rising and a new round of sanctions looming over the Russian economy, this can adversely affect the single European currency and of course, us - the binary options traders. We will explore in detail on the fundamental and technical situation which is affecting the EUR/USD pair.
On the one hand we will have the European Central Bank's (ECB) interest rate decision coming Thursday and there could be some negative Euro announcements in that next press conference of Mr Mario Draghi, the President of the ECB, however much of the effort to ease monetary policy has already been priced into the market.
So what will the ECB do - in our view nothing unexpected by the market. We have no solid view as to where the Euro will be trading until Thursday, but we do know that the pair has been quite weak for so long, with most of the negative sentiment already in the current price of the EUR/USD.
Our recommendation for tomorrow, the 2nd of September is to buy daily calls for Tuesday expiry on the EUR/USD if we see a break above recent ranges. Looking on the chart which is supplied with this forecast we are identifying a couple of key levels. On the downside we would be buying calls around 1.3120, with the reasoning that there is sufficient barrier protection before 1.3100.
If we see an hourly close below 1.3115 this scenario is invalidated and we would be buying daily puts for Tuesday expiry to reverse our position.
On the upside we would be looking for an hourly close above 1.3150 to buy daily call options expiring on Tuesday. And make no big forecasts for the prices on Thursday - there is plenty of data this week, so there is no telling what could happen later on, stick to Binary Options Post for more forecasts on this very interesting forex pair for all binary options traders.