› Weekly Binary Options Technical Forecast August 26 - 30

Weekly Binary Options Technical Forecast August 26 - 30

EUR/USD: Bullish retracement.

The bears failed to push EUR/USD below recent bottom at 1.1050. The bulls used that weakness as an opportunity to buy call options and lifted the pair back above 1.1140. The four-hourly chart (see the screenshot below) had a serial divergence by MACD indicator as the lower-lows of the rate were coinciding with higher lows of the indicator. The bullish divergence was also confirmed by fast RSI oscillator as the market signalled a bounce-by-trend before the long green shadow on August 23. However, those traders who missed the opportunity to start buying call options should wait for another bounce south as the upside movement was limited by 89-bars simple moving average, which acted as the resistance curve. The nearest pivot level to watch is 1.1100 round-figure support, which should be tested sooner rather than later. If the bears failed to push EUR/USD lower, and of the buy-signal occurred, then traders should consider starting a new cycle to buy call options with 60- and 30 minutes expiration times. Buying put options is not as attractive as the downside pressure might be limited and short-lived.

Weekly Binary Options Technical Forecast August 26 - 30


GBP/USD: Bullish recovery.

The British Pound was overperforming the foreign exchange market this past week. Although the U.S. dollar index dropped 0.96%, GBP/USD managed to develop the bullish recovery, adding 1.17% to the exchange rate. What’s more, that optimistic performance was second in a row if counting the weekly candlesticks. The intraday timeframe (four-hourly chart below) had a bullish breakthrough signal on August 22 as the close rate appeared above the upper line of the Bollinger Bands indicator. The sequence of higher rate was confirmed later that week, and there is a doubt that the signal had already worked out the whole depth of the bullish recovery. The overall angle of the indicator had changed, the spread between lines confirmed high volatility and strong bullish momentum. Therefore, buyers of call options for GBP/USD could keep dominating the market. The only condition before entering the trading cycle is to wait for a bounce toward the middle BB line, which should act as the support during the bearish retracement. If the pair failed to breach the support, then another upside swing would be likely.

Weekly Binary Options Technical Forecast August 26 - 30


EUR/GBP: Bearish acceleration.

The most liquid cross-rate extended losses and tested the bottom of 0.9000 figure. That round-figure static support was a tough nut to crack for the buyers of put options, and EUR/GBP bounced back up to 0.9080/90 resistance range. Ichimoku Cloud trend indicator is bearish on the four-hourly timeframe, suggesting another round of selling. The leading span has quite a wide negative surplus, Conversion and Base Lines act as the resistance range. Therefore, buying put options is preferable on a possible test of the 0.9100 figure as the Base Line resistance curve comes at 0.9106 currently. If the pair dropped below the local bottom at 0.9028, then the downtrend could resume towards 0.8950 and 0.8900 in extension. On the other hand, if the call-option buyers lifted EUR/GBP above the top of the resistance range of 0.9106/20, then a deeper bullish recovery might take place.

Weekly Binary Options Technical Forecast August 26 - 30


GOLD: bullish continuation.

After breaking through the lower green trendline, the price of gold had found local support on the parallel projection of that trendline. The bearish retracement was finished after reaching the depth at $1490 per ounce on August 13. Since then, the yellow metal had a pit-stop, consolidating around $1500 round-figure, and gathering bullish momentum before accelerating the uptrend. The breakout happened last Friday when the price of gold surged to $1525/27, and buyers of call options were strong enough to lift the price above $1540 on Monday morning. However, postponed put-orders were triggered and the commodity retraced back to $1525 ex-resistance now support. Despite certain overbought conditions, the bullish continuation is likely as EMA 21 and SMA 89 curves are in the right order to proceed the uptrend. Binary options traders should wait for a bullish signal before buying call options with expiration times around 30- and 60-minutes, while shorter timeframes might be lucrative during New York trading sessions this week.

Weekly Binary Options Technical Forecast August 26 - 30


USD/CNH: The bulls gain momentum.

The Chinese yuan was leading the losses among emerging markets currencies as USD/CNH gapped this weekend. The open rate was 280 pips higher than the close rate printed on Friday, and that huge difference might signal that the market is in turmoil. Current rate above 7.16 yuans per dollar is in unknown territory for the technical analysis as such a high rate was noticed more than 10 years ago. There is no reason to add any technical indicator to the chart as most of them will reflect overbought conditions and extreme values. The market is driven by emotional effect, and binary options traders rush to buy call options for USD/CNH amid trade war tensions. There is a technical rule that the weekend gap has to be filled by the price, however, that might not happen as the bullish momentum is extremely strong, and we might see more bullish achievements in this trading week.

Weekly Binary Options Technical Forecast August 26 - 30


Read also

You have successfully registered

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