The Euro has been stalling in the past couple of days, drop halted
With Janet Yellen speaking at the opening remarks of the Kansas City Federal Reserve's annual economics symposium, we would be betting that she will not be sounding very good for the dollar. Not a big trend change, but certainly not much room to rally for the US dollar against the Euro in the coming session.
If we look at the charts, binary options on the EUR/USD have been hovering around the 1.3270 area. This is a level where we would be keen to proceed to buy daily call options for tonight's expiry as the pair has dropped quite substantially lately without any material correction.
The Euro has been lately pressured by the statement by from the European Central Bank in the beginning of the month that Europe is on a different monetary policy course to "other major policymakers". However there is not much merit for Mario Draghi to communicate further policy decisions in Jackson Hole as many traders expect.
We would be focusing on buying the Euro around the hard support level on the chart seen in the 1.3240-50 area precisely because we think that the expectation for Mr. Draghi to put some more on the table is miss-footed.
Janet Yellen is just on the wires and we are seeing no material change in her tone from what was announced earlier this week in the Federal Reserve's minutes from the latest meeting in July, a great opportunity to buy the Euro for a daily call with expiration for later tonight.
IF we look at the charts only an hourly close below 1.3230 would warrant a further decline towards 1.3200. While in the long run this might be the case and will most likely happen sooner rather then later, we prefer to see 1.3230 vaulted before buying daily puts.