› Weekly binary options technical forecast July 15 - 19.

Weekly binary options technical forecast July 15 - 19.

The 15-minutes chart below shows six trading cycles based on RSI oscillator’s trading signals, which used to work in the past week. Four of them were based on RSI divergences as the price action was going in contradiction to the indicator’s performance. Two last price swings formed a bounce-by-trend pattern, which is supposed to signal a bullish continuation. A yellow sideways range is also noticeable as the oscillator was hovering around the 50% level, pointing to uncertain market conditions. The chart setup has 8 trading signals, which worked well as reversal points last week, showing best entry opportunities to start mid-term trading cycles. Despite the long-lasting bullish swing in the middle of the trading week, put options brought the almost equal percentage of profitable deals as the number of consecutive red candlesticks was considerable for one-way action.

Current technical sentiment points to the expansion of call options for the week ahead as RSI is bullish, while its value is rather far from overbought conditions. Therefore, an upside swing is suggested to open the trading week. However, if the bulls were unable to breach the local resistance range at 1.1285/1300, then a bearish retracement would take place. It’s recommended to monitor RSI in terms of peak formations above the mark of 70%, as well as potential bearish divergences to start a put-option trading cycle. An alternative scenario is a bullish breakout, which would open an opportunity to buy call options throughout the next week with possible breaks as the RSI indicator would chart several bounces and reload periods.

Weekly binary options technical forecast July 15 - 19.

GOLD: Bullish breakout with possible retracements.

The price of gold had finished the southwards action last Tuesday after breaching the Bollinger Bands’ middle line and edging lower towards the support. The first trading signal came on July 9 as the bears failed to push the price below the support line, leaving a long shadow on the 1-hour candlestick. As a result, the bulls gave seven profitable deals in nine hours until an opposite signal came, pointing to a possible consolidation. The bullish rally continued on July 10 as gold price breached the Bollinger Band middle line, and charted a bullish breakthrough signal. Another lucrative call-options trading cycle gave 10 deals in the money, out of 12 hourly candlesticks. The bearish engulfing and bulls’ inability to proceed with the rally opened an opportunity to start buying put options. At the end of the week, the gold price printed another bullish breakthrough, which should confirm the market’s intentions to lift gold prices higher.

The intraday trading strategy should be focused on catching strong bullish trends. Binary options traders should start call cycles on two possible conditions. First, the price of gold retraces to the bottom of the range but fails to breach the support. Second, the rate breaks through the BB middle line after bouncing off the resistance band. The Bollinger Bands spread also has to be monitored as bullish rally come together with higher volatility. On the other hand, bearish reversal signals might show the beginning of the put-options cycle. For example, an intraday double-top formation with lower highs, or long upper shadows on hourly candles without breaching the upper BB band could indicate such a retracement.

Weekly binary options technical forecast July 15 - 19.

AUD/USD: Bullish reversal with possible acceleration.

The AUD/USD currency pair had found a bottom in the middle of the past trading week. The bearish action was followed by the Parabolic SAR indicator’s consistent bearish sentiment as prices were below its dots for most of the time. However, that situation changed after the bulls lifted the pair above 0.6950, charting an impressive green 30-minutes candlestick. Stochastic oscillator acted as a leading indicator for the rest of the week as most of its signals to start buying call options were coming before Parabolic SAR dots jumped below the price chart. However, a long-lasting upside movement caused overbought conditions, and a short-term consolidation or a bearish rebound should happen to reload the intraday oscillator.

Binary options traders should use the same tactics in the 30-minutes timeframe as shown below. The first trading signal comes from Stochastic with its lines charting crossover or both lines coming out of the oversold territory or the middle of the range. The second signal comes from Parabolic SAR. Once its dots jump below the price, that event confirms the bullish signal from Stochastic, pointing to a start of the call-options cycle. If AUD/USD breached crucial technical resistance of 0.7050, then the bulls might accelerate the action in the medium-term perspective. On the other hand, if the bears charted a long red candlestick with long upper shadow on top of it, then a local resistance would be found with potential bearish reversal as the result. Therefore, traders should be ready to start buying put options if that happens.

Weekly binary options technical forecast July 15 - 19.

USD/CHF: Bullish daily retracement is over.

The U.S. dollar reached a local top of the market versus the Swiss Franc, according to the daily chart setup below. The Ichimoku Cloud outlook remained bearish with the negative span; the upper swing was nothing but retracement as the bulls failed to hold daily close rates above both Ichimoku Base and Conversion lines. A Doji Star candlestick on July 9 charted a strong technical signal to buy put options for USD/CHF with a long-term perspective. Local support levels are:

0.9800 - round-figure psychological level;
0.9762 - lowest daily close rate charted on June 28;
0.9720 - the recent bottom.

Weekly binary options technical forecast July 15 - 19.

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