Triple Threat Thursday Outlook
The first two events are sure to create volatility. The ECB Press Conference typically creates an eighty pip move during the press conference. With the daily chart overextended to the upside, a potential downward move, pushing price to 1.1141 is likely.
The UK elections may create some movement during the US session, but the majority of the movement is likely to come in during the Asian session. Currently, the daily chart is showing a potential for hidden divergence to the downside forming. If this price holds, price could well be pushed down through the 1.2745 area. The reversal bar formation is key to this pattern, and may form today.
Ex-FBI James Comey testimony can also create volatility throughout the day. Traders may opt to side on the sidelines during his testimony or the market may swing up or down depending on his testimony. Currently, the daily charts on the ES (e-mini S&P 500) and YM (e-mini Dow Jones) are both overextended to the upside and have formed trend divergence indicating a retracement.
Regardless of whether a trader’s bias is to the downside or to the upside, Thursday is likely to be a wild ride in markets. The daily and weekly binary options allow traders to participate even during volatile days, like Thursday, with limited risk especially when using the Out of the Money binary options.