Daily Market Analysis March 24th, 2015

Reading Time: 2 minutes

Market Analysis whyoptionsGood morning traders,

The Dollar is the King, that’s all there is to it. There was a slight decrease on Friday, however, that had nothing to do with a change in trend, just a repositioning of the currency, in my opinion.

The EUR / USD is managing to keep its head above water above the 1.08 level as it waits for the very important meeting between Greece and Germany to discuss how they can avoid a Greek default.

The question remains as to why the USD saw a shortfall on Friday. As global stocks and the USD had been climbing the graphs for the longest time, seems there was a breakup in that relationship. Global Stocks rallied and the stock market itself saw a volatile fall and hence the USD went south. However, the major factor that had the most impact on the downward trend of the greenback was the Federal Reserve’s FOMC statement as mentioned in yesterday’s analysis. Another factor was the short position of the Euro as it also turned even lower last week. With post extremes, the currency did take a profit.

These two foundations are laid as reasons for the structure of the dollar becoming a weaker player in the G10 last week. The USD fell abruptly against the AUD, Kiwi (NZD), EUR and the CHF (Swiss Franc). In the wake of the new trading week, the USD was able to recover against CHF, GBP and the CAD. This goes to show that this is not a trend but just a jolt in the market. In my opinion, this makes for a complex week. The USD will need to show traders it is stable and traders may need to shift their focus to other currencies this week namely the EUR and / or the GBP.

The GBP / USD as the pound has been a weak contender to the greenback for the past few weeks and yesterday showed that the GBP was yet again down against the USD. Even though, Friday saw an increase for the GBP it did not manage to sustain the high and it appears that the bearish trend is still taking the lead.

The EUR / USD, on the other hand, could see a longer period of alliance recovering from such a heavy fall in the past few weeks. Monday sees an important meeting for the currency and will be held between Greece and Germany. This does not imply that we will see a drop as there was an increase in the currency the last time there was a major European event such as the Greek election in January.

Best Binary Options Brokers

Broker Bonus Rating Review Open Account
GOptions Up to 100% 95/100 Review Visit Broker
OptionBit Up to 100% 90/100 Review Visit Broker
24Winner Up to 150% 90/100 Review Visit Broker
BO 360 Up to 50% 85/100 Review Visit Broker
Opteck Up to 100% 85/100 Review Visit Broker

Today’s Binary Options Trading Tip:

The EUR strikes me as being more resilient than the pound for this week at least, GBP lost its yield and sentiments are that the currency will see darker days especially with the election in May coming up. The USD will need to show some discretion this week as traders may have been offended at the sharp decline on Friday. However, my sentiment is that the dollar will continue to take the bulls by the horns.

Happy trading!

Follow me

Jason B Kruger

Professional Trader at WhyOptions
Jason B. Kruger is a Professional Trader & Chief Editor for WhyOptions.com, who is considered ‘The Authority’ on Binary Options Trading Strategies, Reviewing Brokers,Providers and their Products.
Follow me

Latest posts by Jason B Kruger (see all)

Tagged with:

Binary Options Trading carries a high degree of risk to your capital. Please ensure you fully understand the risks before you start trading,and if necessary seek independent advice. Whyoptions advises its clients to read carefully the terms and conditions of each broker before opening an account. Copyright © 2014. All Rights Reserved - Whyoptions.com