Do you think you should trade this week?
This is your binary options and forex news update for March 21st through the 25th, 2016.
The blame game for the market’s volatility is in full swing. Blame it on the Fed’s. That’s what the markets tend to do. Why is that? Like it or not, much power is wheeled by the Fed’s that create big tremors of market volatility.
Which ever way the currency markets go are always in direct correlation with what the Fed’s say…and do. Just as we called it last week, for all the chirping the last few month’s about a strong U.S. economy that’s prime for a series of rate hikes, this week revealed that the Fed’s will be serving their own crow for dinner.
With a Fed shift on how many rate hikes would be in play this year, the adjustment on the dot plot from 4 to a tentative 2, and the adjustment on forecast inflation from 1.6% down to 1.2% had the USD reeling against its currency counterparts.
For many traders, this week’s tumble for the USD was welcomed as we saw Yellen and the Fed’s show their dovish face once again. The Fed’s bark proved to be much bigger than their actual bite.
A light Easter week of releases will make for tentative trading opportunities. Traders can anticipate that the USD will kick the can down the road and “Uncle Sam” will maintain a weak chin this week as oil hopes to continue its momentum at $40 a barrel and beyond. The inverse effect pattern that plagues the USD against an oil rally will have the currency showing cracks of frailty.
The USD looks to regain footing this week, but watch out as the Euro could continue a run against the USD. With last week’s peaks at $1.13 and beyond, don’t be caught off guard as a break out run could see retracement levels above $1.135.
For the Cable, we may also see the Sterling take another run. It may have the currency connecting with a few jabs that could continue to deplete the energy of the USD.
Good trading opportunities will open up for the patient trader that confirms the underlying patterns for this Easter week. If you’re a trader with an itchy trigger finger this may be the week to lay off the markets or perhaps change your strategy to a more steady approach. Keeping a steady hand will be the advantage on cashing in on the limited opportunities and having your Easter basket full of golden eggs. Whether you enjoy the fast pace of quick turnaround profit or the “steady as she goes” approach to trading, we have a custom system that will have you “In The Money” with a smiley face of awesome satisfaction.
Take time for family this week leading up to Easter, and remember the reason… “He is Risen”