Weekly Binary Option Setups for March 21st – 25th

BinaryOptionsNow | Published on March 22, 2011 at 9:53 am

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NEW YORK (Binary Options Now) – The U.S. Dollar turned in a mixed performance on Monday, with risk appetite increasing in the market after concerns over Japan’s nuclear power crisis subsided.

Also, tensions in the Middle East continued, despite a tentative cease fire in Libya, giving support to the prices of crude oil and gold.

Binary Option Setups For Upcoming Major Market Events

A number of key fundamental economic data releases due to be reported in the news this week could give forex binary option traders ample opportunities for profitable transactions. Some of the more important events include:

1. U.K. CPI and the MPC’s Meeting Minutes:

Due out on Wednesday in the GBPUSD news, the Bank of England Monetary Policy Committee’s Meeting Minutes may well have a major impact on Cable. Furthermore, key inflation measures such as CPI in the U.K. have been running around twice the BOE’s target of 2%, with the last reading at 4% and Tuesday’s number currently forecast to come in even higher at 4.2%.

A forex binary option GBP call/USD put could be a way to profit if the minutes show a hawkish demeanor that could signal the first in a series of possible BOE rate hikes to counteract indications of rising inflation.

2. RBA Financial Stability Review:

The RBA’s Financial Stability Review, due out late Wednesday, assesses the overall health of Australia’s financial system and the potential risks to economic stability.

A forex binary AUD call/USD put option will allow the binary option trader to potentially profit if the report appears hawkish due to an economic assessment that calls for the RBA to hike rates in the near term.

3. U.S. Durable Goods Orders:

Due out on Thursday, U.S. Durable Goods Orders and Core Durable Goods Orders generally impact the entire forex market. A forex binary strangle on EURUSD, GBPUSD or any of the commodity currencies versus the U.S. Dollar may offer the binary option trader an opportunity to take advantage of the volatility inherent in the release of these two key indicators.

The binary USD call option may profit if the Durable Goods Order number is significantly higher than +1.2% that is expected, or the Core Durable Goods Orders comes out above the +2.2% consensus. Conversely, the binary USD put option may be profitable if either or both numbers come out substantially lower than the consensus.

4. EU Economic Summit:

The European Union Economic Summit to be held on Thursday and Friday will give binary option traders ample opportunity for profitable transactions. EU leaders will discuss plans for the “pact for the Euro”, which was agreed upon last Friday, as well as plans to increase the Bailout Fund and the Permanent Fund to be established in 2013.

Given a rather volatile Euro forecast during the event, the Euro call option side of a EURUSD binary option straddle may appreciate considerably if EU leaders reach a solid agreement. Conversely, the Euro put binary option side may appreciate if any signs of disagreement among EU leaders indicate friction in reaching an accord. Furthermore, legging out of the straddle as the market in EURUSD fluctuates could substantially increase the profitability of the binary straddle strategy.

5. Japanese CPI:

The volatility in the Japanese Yen has taken center stage in the forex market since last Friday’s devastating earthquake and tsunami, with the Japanese Yen having made a new post-war high against the U.S. Dollar last Thursday due to Yen repatriation.

The release of both Tokyo Core CPI, and National CPI late Thursday this week could give binary option traders a good chance to make profitable transactions. For example, a binary USD call/JPY put option can be a profitable purchase if either number comes out higher than the -0.3% consensus expectations.

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