› Weekly Binary Options Technical Forecast 2 - 6 September

Weekly Binary Options Technical Forecast 2 - 6 September

EUR/USD: Bearish acceleration.

On August 23, Euro’s downtrend was stopped above the support level at 1.1055, and EUR/USD retraced on the back of strong demand for call options. Some of the binary options traders were considering such a sharp bearish swing as the first sign for a long-term reversal. However, the market tricked those optimists. Once EUR/USD tested former support now resistance level slightly above 1.1150, buyers of put options stepped in immediately. As a result, the pair was declining throughout four trading days, and even accelerated the downtrend last Friday after breaching the bottom trendline of the descending channel (see the one-hour chart showing two last weeks below). From a long-term perspective, the recent bearish achievement was the lowest weekly close rate in 28 months, and the psychological round-figure support of 1.1000 dollars per euro was eliminated. Although most of the technical indicators are extremely oversold, especially intraday, the bearish action is going to continue weighing on the market’s demand for put options. Next targets are placed at 1.0924 and 1.0878 in extension.

Weekly Binary Options Technical Forecast  2 - 6 September

GBP/USD: Bearish slide.

The bullish retracement seems to come to an end for the British pound as well. GBP/USD struggled to overcome the defensive barrier of 1.2300 last week, the intraday chart below clearly shows the lack of bullish momentum around that level (1.2297 1H close and whipsaw above). The hourly chart also shows how the trading signal to start buying put option was developed. First, fast Relative Strength Index with a modified period of 13 bars charted a bearish divergence and started sliding. Second, the Commodity Channel Index (21-bar period) went off the overbought territory, signalling a possible reversal. Third, MACD lines crossed each other, completing the bearish pattern. As a result, GBP/USD dropped 150 pips in three hours and continued trading with the domination of put-option buyers throughout the rest of the week. Daily and weekly timeframes look extremely bearish, and the downside pressure is likely to persist in the week ahead.

Weekly Binary Options Technical Forecast  2 - 6 September

EUR/GBP: Bearish continuation.

Considering the plunge of EUR/USD, which was much faster than the decline of GBP/USD, the EUR/GBP cross-rate continued sliding south this past week. However, the price action was reminding a consolidation range with the dominance of put options across the board. Bollinger Bands indicator (period 34 bars) and Williams %R oscillator (14 bars) worked together well, showing extreme points of the range, and indicating potential reversal signals. The latest formation looks like a bearish breakthrough signal, promising lower rates shortly. Thus, buying put options is more attractive, especially after the cross-rate charts a false bullish whipsaw on intraday timeframes.

Weekly Binary Options Technical Forecast  2 - 6 September

NZD/USD: Bearish continuation.

The New Zealand dollar was underperforming the rest of the major currencies versus the U.S. dollar as NZD/USD continued the bearish trend. Binary options traders were buying put options for the pair throughout the whole trading week. The sell-highs trading strategy was the most efficient on one-hour timeframe according to the chart below. Triple exponential moving average with periods 21-, 34- and 55-bars worked best, showing entry points and moments when to start buying put options as buyers of call options could not overcome the resistance curve several times this past week. Stochastic RSI oscillator was acting as a secondary technical indicator, charting confirmation signals when both lines were crossing each other on the upper side of the range. The selling pressure should keep weighing on NZD/USD as the long-term technical outlook is extremely negative, and the pair might reach multi-year lows as early as this upcoming week. Put options are preferable on intraday bearish signals.

Weekly Binary Options Technical Forecast  2 - 6 September

USD/CHF: Bullish retracement.

Awesome Oscillator had a bullish serial divergence on August 5 - 13. Such a strong reversal signal forced traders to change the sentiment and start buying call options at 0.9669. Although there was another attempt by put-option buyers on August 23, which was coming together with extremely oversold levels on Commodity Channel Index, the uptrend was still in play. USD/CHF finished the trading week at 0.9899, one pip shy of strong resistance level. The four-hourly chart below suggests a bearish pullback toward the support range of 0.9850/70 as Awesome Oscillator and Commodity Channel Index reached overbought levels, and they need a reload. However, the overall technical sentiment is positive to continue the uptrend, and buyers of call options should seek intraday signals on short timeframes to enter the market, counting breakthrough above 0.9900 resistance.

Weekly Binary Options Technical Forecast  2 - 6 September

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