Binary options euro dollar (EUR/USD): trading profitably and carefully
- VFX Blog
- For beginners
Choosing a trading asset that most closely matches the current market situation is not easy even for professionals, let alone beginners. You can open deals simultaneously on different instruments trying to reduce the overall risks, or choose one, concentrating all your attention and experience on it. These can be binary signals for the euro/dollar pair.
The Euro is the main competitor of the US dollar in the global economy, although in the last 2-3 years its position has somewhat weakened against the backdrop of the strengthening Chinese Yuan. Despite this, the currency pair remains the largest in the Forex market (23-25% of intraday turnover), plus active trading in derivatives: currency futures, CFDs and stock options
The pair lends itself well to any type of analysis due to the large amount, news, statistics and binary option trading signals. Strong reaction to any negative or positive trends in the economic and political spheres of the EU and the USA. Due to maximum liquidity, it has low spreads and broker commissions, and a high percentage of profit on options.
• European Forex session (07.00-16.30 UTC). The main period that accounts for the main volume of transactions. Until 10: 00UTC, the movement is more dependent on the actions of Asian traders who fix profits/losses at the close of their session. Before the opening of America, there is a short-term decline in the quote.
• Europe-America. (13.30-16.30UTC). Profit-taking and aggressive actions of American traders (60-70% of the total volume). In this period, most of the important fundamental events in the US are released, which can both strengthen and reverse the main trend. Not recommended for binary options!
• America (13.30-20.00 UTC). The dollar is strengthened by the movement of capital from the Euro to dollar currency and stock transactions. European stop orders are actively squeezed, which can be seen on the chart as sharp and frequent pullbacks. Choose an expiration of at least 3-4 hours for options signals and only if there is a clear trend!
• Asia (20.00-07.00UTC). EUR turnover falls to a minimum; we remain outside the market and wait for the opening of Europe
With any strategy and methodology for analyzing the current market, we must take into account the following indicators:
• Statistics and expert assessment of the global situation in the Eurozone and the USA;
• Reports of financial regulators, speeches of their heads and official representatives;
• Forecast of the monetary policy of ECB and FRS;
• Movement of major European stock indices (DAX, CAC 40, FTSE100)
• Prices for energy resources, commodity futures, consumer sentiment indices.
There is a long-standing debate as to whether a given pair belongs to “fundamental” or “technical”. Since it is the Forex leader in terms of turnover and influence on the global economy, fundamental factors certainly have a significant impact on its dynamics and can even lead to a complete reversal of the trend.
But at the same time, the pair is very "technical" and most of the trading day (especially in the European session and the overlap of Europe/America) indicators, technical and candlestick patterns are worked out "classic", which makes it possible to open deals for beginners while observing strict money management. Let's see an example in IQ Option signals software: