› Weekly binary options technical forecast August 12 - 16.

Weekly binary options technical forecast August 12 - 16.

EUR/USD: Bullish recovery.

The pair continued the upside formation with a bullish acceleration this past Monday. Since EUR/USD had found the bottom on August 1, and MACD trend indicator signalled a crossover, which was confirmed by fast RSI oscillator (see green lines on the hourly chart below), the upside pressure was in play. As a result of the 18-hours rally, EUR/USD breached the psychological round-figure resistance level at 1.1200 and headed north towards 1.1250. On the other hand, a bearish signal occurred when the MACD lines crossed each other, and RSI went off the overbought territory, forcing traders to buy put options for the pair (vertical line on the chart). Since then, the pair was hovering around the same rate, trading in a tight sideways range, which could act as consolidation before further upside action. Parabolic SAR indicator had changed its sentiment several times in last days, which could point to uncertainty among binary options traders. However, a bounce back to former resistance now support at around 1.1175/80 is still possible. That range could work as a base for another bullish rally this upcoming week. Therefore, intraday bullish signals have to be monitored before buying call options again.

Weekly binary options technical forecast August 12 - 16.


GBP/USD: Bearish breakout.

The British Pound had continued the weak performance four weeks in a row. WHat’s more, GBP/USD breached strong technical support level at 1.2168, the lowest weekly close rate in March 2017. Besides that, the bears pushed the pair to the lowest weekly close at 1.2028 since Brexit in 2016, which extremely bearish for the long-term perspective. Like any other strong trend, this bearish action needs a healthy retracement as daily oscillators are getting extremely oversold. The intraday technical outlook suggests that the market players are keen on buying call options for GBP/USD in the near future, and the exchange rate might reach former support now resistance at around 1.2091 before continuing going south. The Relative Strength Index bounced off the weak level, and headed to the 50% threshold, while Commodity Channel Index signalled a bullish retracement. The 55-hour simple moving average represents the local resistance curve where traders could stop buying call options and reverse the pair back down.

Weekly binary options technical forecast August 12 - 16.


EUR/GBP: Extremely bullish action.

Both components of the cross-rate - EUR/USD and GBP/USD - were split in terms of the trend’s direction this past week. As a result, EUR/GBP soared to 10-year highs above 0.9300, gaining strength of more than 3.5% in two weeks, which is quite a rare performance for such as slow-moving cross-rate. The technical outlook suggests an even higher rate as the weekly Bollinger Bands indicator has a clear bullish breakthrough signal, and the close rate is above the upper band, while both lines were spread, pointing to high volatility. On the other hand, a retracement is also required, and the double-Bolli formation suggests possible depth at around 0.9230/56 where call-option buyers would seek bullish signals.

Weekly binary options technical forecast August 12 - 16.


GOLD: a 6-year high was renewed.

The price of gold surged to $1510 per ounce this past week, adding another 4% on the back of risk-aversion flows and strong demand for call options for all of the safe-haven instruments across the board. However, that action triggered a lot of put-option entries as the price was too high to proceed the uptrend from the psychological point of view. Although there was a daily close above the round-figure threshold, the lack of a weekly close above $1500 could fuel a bearish retracement as long-term oscillators need to reload the momentum. Daily Ichimoku Cloud trend indicator shows that the local top has been found, and it’s worth expecting the yellow metal to bounce back to the support curve of Ichimoku Base Line (brown on the chart below). The top of the leading span is also placed between Conversion and Base Line where the correction might head to. Therefore, aggressive traders should consider buying put options for gold until the support range of $1448/55 is reached. The general trend’s direction is north though, and binary options traders could resume buying call options for gold around that price level.
Weekly binary options technical forecast August 12 - 16.


AUD/USD: The downtrend to resume.

Although the Australian dollar charted a long shadow on daily candlestick on August 7 and bounced back up to 0.6822 (weekly high rate), the overall trend remained the same. Technically speaking, Parabolic SAR indicator did not turn bullish yet as its dots did not jump below the price. ADX and DI indicator also remained bearish as the negative surplus and the mainline above the threshold point to a bearish continuation. Therefore, the upside bounce may be considered as over, and binary options traders should come back to buying put options for AUD/USD. If a local bottom of 0.6700 was overcome by the bears, we could see a deeper slide of the pair with a medium-term target of 0.6500 and beyond.

Weekly binary options technical forecast August 12 - 16.


Read also

You have successfully registered

You can choose the needed type of account at any time!