The Weekly Top 5 Binary Options Trading Forecasts 08/25-29/2014
The Must Watch Top 5 Events of the Week
1. New Zealand Trade Balance
08/25/2014 – Monday at 10:45 pm GMT
What will it affect: NZD
Forecast: -475M from the previous of 247M
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX
Why traders care and what to expect: This indicator shows the difference in value between imported and exported goods during last month. A negative value shows that more goods were imported than exported, which is not seen as a good thing for New Zealand Dollar because export demand is highly linked with domestic currency demand.
Directional bias: UP if the actual value is higher than -475M
Down if the actual value is lower than -475M
How I would trade this event: I would buy an end of day Put on NZD/USD if the value will be as expected or lower.
2. US Core Durable Goods Orders
08/26/2014 – Tuesday at 12:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 0.5% from the previous 1.9%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: Durable Goods Orders show the change in value of new purchase orders placed with manufacturers for relatively long lasting goods, with a life expectancy of more than 3 years. The Core version of this indicator excludes transportation items because they are volatile and almost always distort the underlying trend, especially aircraft orders. This is why the Core version is seen as a better report regarding purchase order trends.
Directional bias: UP the actual value is higher than 0.5%
DOWN if the actual value is lower than 0.5%
How I would trade this event: I would buy a four hour Put on USD/JPY if the value will be as expected or even lower.
3. US Pending Home Sales
08/28/2014 – Thursday at 2:00 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 0.6% from the previous -1.1%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: This monthly report tracks the change in the housing contracts of existing single-family homes still awaiting the closing transaction. This report is considered more relevant than Existing Home Sales as a home is counted as sold several weeks after the contract has been signed. A rebound in housing demand could signal a potential economic recovery, where buyers are more confident in the current economic situation.
Directional bias: UP the actual value is higher than 0.6%
DOWN if the actual value is lower than 0.6%
How I would trade this event: I would buy a four hour Put on EUR/USD if the value will be higher than 0.6%
4. AZN Business Confidence
08/29/2014 – Friday at 01:00 am GMT
What will it affect: NZD
Forecast: no forecast is made for this indicator (previous 39.7)
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX
Why traders care and what to expect: This is a monthly survey that analyses where the economy will be going over the next 12 months based on the outlook of 1,500 businesses nationwide. Last month’s number was 39.7 and although a number above 0.0 indicates optimism, we noticed constant decrease throughout the year (in February the value was 70.8).
Directional bias: UP if the actual value is higher than 39.7
Down if the actual value is lower than 39.7
How I would trade this event: I would buy a four hour Put on NZD/USD if the value will be lower than 39.7
4. Euro-Zone Consumer Price Index Flash Estimate (YoY)
08/29/2014 – Friday at 9:00 am GMT
What will it affect: EUR, DAX
Forecast: 0.3% from previous 0.4%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: As you know by now, the Flash version of any indicator is the earliest and thus tends to have a more significant impact on the market than the other versions that succeed it. Letting this aside, CPI is a very important report which offers market analysts an early glimpse at inflation and we know that for the moment Euro-Zone’s inflation is the leading star among economic indicators.
Directional bias: UP if the value is higher than 0.3%
DOWN if the value is lower than 0.3%
How I would trade this event: I would buy an hourly Put on EUR/USD if the value will be lower than 0.3%
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Note: The times, dates and values can change during the week. Also, different sources sometimes show different values. Keep an eye on the mentioned financial websites for any modifications.