Review and opportunities for binary options trading

Current weekly review of economic events against the effects of major forex pairs and binary options trading.
As always on Fridays at this point in the future, I would like to give you a brief review of the economic events of the past week. The economically most important nations have published numbers and indicators, so that this is the focus.

Then follows a brief technical assessment of the money markets, before I then take a closer look at the 5 major Forex pairs. Here I call expilzit interesting areas in which opportunities for trading binary options arise, for example via the broker IG.

Economy

EU: The European economy is located economic indicators released this week continue to stagnate. So little has changed since last week. Even worse - the European anchor Germany also produced disappointing data.

ZEW economic expectations were extremely low. That applied to both Germany and the rest of the EU. French consumer price inflation and the Spanish consumer price index per month are in the negative range and point to stagnating economic demand.

German quarterly GDP was also down at -0.2% and fell year-on-year from 2.5% to 0.8%. Meanwhile, EU GDP remains at 0% per quarter and falls from 0.9% to 0.7% year-on-year.

EU-wide inflation in the form of the consumer price index remains at 0.4% in comparison Since the ECB has to react in this case, one had to assume that the euro would also react to it. But so far the euro exchange rate has been almost unimpressed

USA: Compared to last week, the USA also had to report mixed data. Monthly retail sales, which are important for the economy, were 0% after 0.2% in the previous month. Core retail sales (excluding catering, gasoline, vehicles and building materials) also only increased by 0.1% compared to 0.4% in the previous month. The labor market also provided negative data. Here, weekly applications for unemployment benefits rose contrary to expectations. The focus should be on the producer price index on Friday. A decline from 0.4% to 0.1% is expected.

Great Britain: The British had to fight with a falling unemployment rate. Although the numbers were as expected, the pound sterling could be influenced and the news depressed the pound sterling against the US dollar. Japan: Industrial production declined, as did Japanese GDP per month and quarter are now in the negative range. This also pushed the Japanese yen briefly down against the US dollar.

Australia: Australia is comparatively stable with a rising house price index and increased business confidence, as well as rising consumer sentiment. The strength of the euro this week and the stable development also pushed the AUD against the US dollar. Canada: Apart from the unemployment figures, Canada is also consistently stable. The number of new residential buildings is increasing more than expected. Here, too, the CAD has become stronger due to the weakness of the dollar

Review and opportunities for binary options trading

Technical valuation of the markets

EUR / USD: In the current environment, it could well be possible that the Euro gains strength against the USD. In my view, two scenarios are conceivable from a technical point of view.

  • Either EUR / USD is up from the current support at 1.33800 USD / € to the resistance area at 1.35500USD / €
  • or he is already turning at the slight resistance, namely the upper trend limit at 1.34300USD / €.
  • If the current support breaks through at 1.33800, the next strong support area would be at 1.31200USD / €.

GBP / USD: The British pound is also currently at a level of support which, as indicated last week, has been reached. A breakthrough can be expected from this current support at $ 1,66800 / £. If this happens, the next important support area is 1.64300U $ / £.

USD / JPY: As already mentioned in the economic section, the Japanese yen depreciated briefly due to poor numbers. However, it is still within a sideways range from which it should not break out so quickly. The USD / JPY correlates very positively with the American indices, since there is a financing effect between the two countries. Strong indices weaken the Japanese yen and strengthen the US dollar against the JPY. If the stock markets continue to be strong, a break through the resistance may be possible.

USD / CAD: In the USD / CAD currency pair, we have two supports that are close to each other. The Canadian dollar is very sensitive to economic indicators. Above all, labor market data have a direct impact, which is why a purely technical analysis is very difficult. At least one can take the resistance or support areas less precisely here and consider the brands as set in stone. Blurring is the top priority here in order to be able to act successfully. The support areas are each at 1.0900CAD / USD and further down at 1.08100CAD / USD. Today's Friday is clearly focused on the unemployment rate, which should push the USD / CAD further up if it turns negative. The reverse could happen if the unemployment rate is positive.

AUD / USD: The AUD / USD currency pair is also currently at resistance at 0.93200USD / AUD. The price is likely to break higher if the US dollar continues to weaken. A further increase in the price of gold would also increase this effect. However, there is a double resistance in the range of 0.94300USD / AUD, which could produce a reversal at least in the short term

THE TRUTH ABOUT BINARY OPTIONS

Some tips and information on technical trade

The analyzes presented here serve to important price ranges identify. These areas have a higher probability of future price developments. However, the areas mentioned should never be determined precisely and punctually and should be taken at face value. The term "areas" is expressly intended and is intended to make it clear that supply and demand are increasingly developing in these zones. How strong this ultimately turns out has to be observed live, but the basic principle in many cases is that if such an area is broken, more panic-like sales or automated purchases will result in greater dynamics. This aspect can be used particularly when trading binary options. Various strategies are available for this. Of course, trading works on all time levels from a market perspective. However, the reliability of the patterns and areas decreases with ever lower time levels.

Please note the risk warning.

Disclosure according to §34b WpHG : The author was not invested in the securities or underlyings discussed at the time of publication of this analysis.

Review and opportunities for binary options trading

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