Forex Crunch Binary Options Setups – July 26-30

Posted: 26 Jul 2010 02:20 AM PDT

This week consists of quite a few market moving events that could provide opportunities for binary options trading. Here are 7 events with potential market reactions and binary options setups.

Binary options can be used as an alternative to the traditional stop loss, as a tool for protecting against false breakouts and lots more. One-hour binary options can be used for trading on news events.

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I’ve selected the events and the setups based on study already done for the forex weekly outlooks, and the potential reactions to surprises. Some events collide with each other and could offset each other. These events weren’t selected.

Quick explanation:

CALL options – if the price closes above the price you purchased at expiry, you earn 75%. If it closes below, you’re left with 10%.
PUT options – if the price closes below the price you purchased at expiry, you earn 75%. If it closes above, you’re left with 10%.

OK, let’s review the events:

US New Home Sales: Monday 14:00 GMT. Market expectations currently stand on 317K. 450K or higher – PUT option on EUR/USD. 250K or lower, CALL option on EUR/USD.
CB Consumer Confidence: Tuesday, 14:00 GMT. Market expects a drop from 52.9 to 51.5, a drop under 48 – CALL option on EUR/USD. A rise above 55 – PUT option on EUR/USD.
Australian CPI: Wednesday 1:30 GMT. Market expects +1%. 1.4% or higher – CALL option on AUD/USD, 0.6% or lower – PUT option on AUD/USD.
US Core Durable Goods Orders: Wednesday, 12:30 GMT. Market expects +0.6%. +1.2% or higher, PUT option on EUR/USD, negative outcome, CALL option on EUR/USD.
New Zealand Rate Decision: Wednesday, 21:00 GMT. Market expects rates to rise from 2.75% to 3%. If it remains unchanged, PUT option on NZD/USD, A raise to 3.25%, CALL option on NZD/USD.
US Unemployment Claims: Thursday 12:30 GMT. Market expects 456K. 480K or higher – CALL option on EUR/USD. Below 430K – PUT option on EUR/USD.
KOF Economic Barometer: Friday, 9:30 GMT. Market expects 2.32 points. Below 2.15 – CALL option on USD/CHF. Above 2.42 – PUT option on USD/CHF.

These expected market reactions and setups are general market commentary. This is by no means investment advice.

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Forex Daily Outlook – July 26 2010

Posted: 25 Jul 2010 02:00 PM PDT

Starting the week with interesting news with New Home Sales in the US, PPI in Australia, and Trade Balance in Japan. Let’s see what awaits us today.

In the US, the Annualized number of new single-family homes that were sold during the previous month increased by 17K. It’s a leading indicator of economic health with a wide-reaching ripple effect.

In Australia, Producer Price Index (PPI), monthly report that measures the change in the price of finished goods and services sold by producers increased by 0.5%. It’s a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer.

For more on the Aussie, read the AUD/USD forecast.

In Japan, Adjusted Merchandise Trade Balance increased by 0.12T, the monthly report that measures the difference in value between imported and exported goods during the reported month. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.

More in Japan, Corporate Services Price Index (CSPI) deceits by 0.1% monthly report that measures the change in the price of services purchased by corporations. It’s a leading indicator of consumer inflation – when corporations pay more for services the higher costs are usually passed on to the consumer.

That’s it for today. Happy forex trading!

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