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EUR/USD Forecast 06/11/2013

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EUR/USD Chart 06/11/2013
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The pair to remain range bound until tomorrow

Trading in the EUR/USD currency pair is likely to remain range bound until tomorrow, when the European Central Bank has a press-conference.

Our strategy is to buy calls if the price goes closer to 1.3455-60 and sell puts on rallies towards 1.3525-30, targeting hourly expiries

In the past couple of days, the EUR/USD price has been constructing a range. During the Asian session and early European morning the pair has rallied towards 1.3520, but encountered some strong offers on the first test and pulled back to 1.3501, with currently trading around 1.3510.

The bottom side was tested twice, with early trading on Asian Monday morning marking the weekly low so far at 1.3440 and yesterday's price action during late European trading and early New York session marking a low at 1.3448.

The daily ranges that have been established are unlikely to be broken today, as there are no substantial announcements on the calendar, with the only news coming at 15:00 GMT with Leading Indicators report being announced. Usually forex binary options prices are not very much affected by this event.

Traders should be cautious if these ranges are broken and try not to seek further tops/bottoms because the news flow might be overwhelming the market. We are likely to see a break of the range tomorrow when the European Central Bank's president Mario Draghi will be speaking at a press conference at 13:30 GMT.

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