Alex Bobrov
Last week, on Thursday, the ECB ended its 2-day meeting with a press conference held by Mario Draghi. The pessimistic mood dominated the conference. Mario Draghi gave everyone to understand that while the ECB is ready to launch even more unconventional stimuli if necessary, this time the central bank decided to wait and see how the previous measures affect the Eurozone economy. At this point, the ECB seems to be focused on reaching the 2% inflation target.
5 Conclusions Resulting From ECB Press Conference
In October 2014, the ECB is planning to start a new wave of asset purchases, which will contribute to the expansion of the central bank’s asset portfolio. Asset-backed bonds come first. Other asset-backed securities come second, late in 2014.
Mario Draghi says the asset purchase volume may reach 1000bn euros. Probably, the ECB is not going to spend the entire sum on securities since the program also includes cheap loans to commercial banks. Draghi is sure that the program will manage to influence the balance to a great extent, thereby getting it back to the levels of early 2012.
As for Greece and Cyprus , they will get a chance to participate in the program on certain conditions. The bonds issued by these two countries will get the right to participate in the asset purchase program or the so-called ABS.
Meanwhile, ECB members are currently supporting quantitative easing in the Eurozone. Mario Draghi underlined its loyalty to easy policies 3 times during the press conference held on Thursday after the 2-day meeting. Most probably, the inflation forecast deteriorated drastically.
EURUSD Prospects
As usual, Masterforex-V Academy and its trading experts help Market Leader and its audience define the current situation and the near-term prospects in currency markets like EURUSD.
The experts report that the mid-term bias in the market of EURUSD is still bearish despite the recent recovery. The downtrend has been underway from 1.2994. The bearish move is a 5-wave count in itself. The 5th wave of the count is going down from 1.2699. At this point, the chart below is showing us some signs of its end. Still, the probability o a further downtrend is still high. Most likely, before stating another decline, the price may recover up to 1.2571. This potential bullish reaction may be followed by a further drop to 1,2499 and 1,2448.
Still, the alternative scenario implies breaking above 1.2571 and MA 55 close to 1,2612 coupled with a break above the top of the descending MF sloping channel. If this is the case, we may see a short-term uptrend in the market of EURUSD up to 1,2698 and 1,2764.
Meanwhile, the Binary Options Department of Masterforex-V Academy assumes that any trader may benefit from trading EURUSD through purchasing put options anytime the price recovers to local levels of resistance. The estimated average lifetime of the binary options is 2 hours.
С точки зрения трейдеров кафедры бинарных опционов Академии Masterforex-V, максимальную прибыль при торговле бинарными опционами на валютную пару евро/доллар трейдер может получить совершая сделки от отката цены вверх при сильном "медвежьем" тренде. При наличии сигналов от торговой системы, сделки на покупку бинарных опционов "пут" нужно совершать до начала основной европейской сессии. Верное определение перспектив движения пары на срок жизни бинарного опциона 2 часа будет способствовать получению прибыли трейдером в размере более 75% от вложенной в сделку суммы.
Alex Bobrov
