› Weekly binary options technical forecast October 28 - November 1

Weekly binary options technical forecast October 28 - November 1

EUR/USD: Bearish reversal

The single European currency had an attempt to continue the bullish action from the past trading week on early Monday. However, things changed completely right on the European open. As a result, the bears regained control over the market after the long upper shadow on the hourly candlestick, which failed to break through the resistance level of 1.1180 dollars per Euro.

The main technical trigger for such a dramatic reversal was the serial bearish divergence on MACD indicator (see the green descending line in the indicator’s window). The bullish spike on Monday morning forced the fast Relative Strength Index to reflect the upside pressure, however, oscillator did nothing but confirm the previous divergence, according to the lower-high sequence. Since then, EUR/USD was vulnerable to the bearish retracement, which lasted till MACD lines performed the bullish crossover on Wednesday, signalling the end of the put-option cycle (green arrows).

The bearish action continued though after both MACD and RSI went back into the negative territory amid the failed attempt to recover by the call-option buyers. Put options were dominating until the end of the past week. Currently, the pair is in a consolidative phase as MACD and RSI are headed towards the neutral zone. However, the demand for put options could soar again, if EUR/USD peaked at around 1.1100 resistance.

Weekly binary options technical forecast October 28 - November 1

GBP/USD: Bearish reversal

The British Pound failed to continue the uptrend as well. After closing the hourly candle above 1.3000, GBP/USD reversed the price action. The trading signal to start buying put options came in from two technical indicators: Bollinger Bands %B, which did not breach the upper resistance line, and Stochastic RSI, which performed the bearish crossover in overbought territory. Since then, the pair entered into the descending channel highlighted by two green trendlines on the hourly chart below. Avery attempt to test the borders of the channel was followed by the rebound, and GBP/USD had quite a volatile price action with several changes of direction. Nonetheless, the overall trend is bearish intraday, thus, every bullish whipsaw has to be considered as an opportunity to start buying put options again. The latest development points to a breakout of the Bollinger Bands, but it is not confirmed by Stochastic RSI, which had already crossed the border, heading south.

Weekly binary options technical forecast October 28 - November 1

WTI Crude Oil: Bullish acceleration

The price of oil was hovering around the weekly open last Monday. There was a first attempt to start an uptrend on Tuesday morning, which caused the bullish crossover of the Ichimoku Cloud trend indicator. After a short-term correction, the black gold soared as the put-option buyers failed to push the price back into the Cloud (green arrow). On the fundamental side of things, an unexpectedly weak inventories report in the United States helped the bulls to rush buying call options, which was immediately reflected in hourly prices. Six large green hourly candles determined the trend’s direction for the rest of the week. As long as the price of oil remains above the Ichimoku span, the uptrend is likely to continue, while bearish whipsaws could give a chance to enter the market, using the buy-lows trading strategy. We expect WTI Crude to proceed with the uptrend in the week ahead.

Weekly binary options technical forecast October 28 - November 1

Gold: Bullish breakout

A directionless trade was noticed in the price of gold until early Thursday. The precious metal was hovering below the psychological mark of $1500 per ounce and there were no trading signals to enter the market. However, the bullish breakthrough of the resistance came along with the first signal from the Bull-Bear Trend indicator, while the confirmation came from the Average Directional Index, which shifted the surplus to positive and the mainline advanced above the threshold. The only problem for the call-option buyers was the resistance at around $1515, which triggered heavy-volume orders to buy put options. Therefore, the bullish rally was limited and short-lived. Current technical sentiment points to a consolidative sideways action. Binary options traders should expect a signal to start buying call options on intraday time frames as the overall trend direction is north, according to long-term charts.

Weekly binary options technical forecast October 28 - November 1

NZD/USD: Multidirectional trade

The New Zealand dollar offered a chance to make some profits in both call and put sides. Initially, the uptrend looked solid and NZD/USD was edging higher toward the multi-weeks resistance at 0.6450. What happened next was a trading signal from Williams %R and True Strength Index, which pointed to a bearish reversal simultaneously. After bottoming out in the oversold zone, Williams %R suggested ending the put-option cycle, while TSI bounced off the zero level during the bullish recovery. However, the bulls were unable to maintain robust momentum, and NZD/USD plunged into the bearish descending channel, which lasted till the end of the trading week. Currently, both indicators point to further dominance by the put-option buyers, although bullish whipsaws towards the resistance of the channel are still on the table.

Weekly binary options technical forecast October 28 - November 1

CAD/JPY: Bullish continuation

One of the most stable performers among currency pairs is the CAD/JPY cross-rate. The four-hourly chart below shows the consistent and gradual uptrend started on September 4. The median green dashed line divides the uptrend into two channels with approximately equal extreme points. What’s more, the recent development shows that the median line acted as support trendline several times, limiting the action south. This line can be used by the binary options traders to open long-term deals with expirations of four hours and above. Short-term fluctuations are not so stable and can be ignored. However, the pace of the growth suggests a further appreciation for the CAD/JPY pair in the medium-term perspective, while the fundamental environment is in favour of the bulls.

Weekly binary options technical forecast October 28 - November 1

USD/MXN: Bearish continuation

One more stable trend is noticed in the USD/MXN currency pair, which kept declining throughout the whole month of October. The daily chart below shows that two crucial technical breakouts happened last week. First, the pair breached the ascending support trendline, which used to hold prices from further slide since April. Second, the exchange rate breached the descending median line, which worked as the resistance in December 2018 - June 2019 and as the support in August - September this year. Such a rare technical event could force the Mexican peso to strengthen even more as USD/MXN could lose the ground. Two more targets are on the table for the bears: 19.0000 as the psychological round-figure mark and 18.9000 as the bottom of the consolidation range in April July this year. If the pair breached both supports, the pair could head towards multi-month lows at around 18.72 and 18.45 in extension.

Weekly binary options technical forecast October 28 - November 1

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