› Weekly binary options technical forecast December 9 - 13

Weekly binary options technical forecast December 9 - 13

NZD/USD: Bullish rally


The New Zealand dollar was surprisingly the strongest major currency versus the greenback this past week. Of course, there was a strong fundamental impact during the demand for CALL options as the Reserve Bank of New Zealand was hawkish in the statement following the interest rate decision. However, the technical background was also in favour of the bulls.

The first signal to start buying CALL options for NZD/USD on the daily timeframe came in two hours after the market opened. Williams Alligator turned into the eating mode as its lines crossed each other in the correct order. MACD histogram was already positive, the Relative Strength Index went into the overbought zone, so everything was prepared for the rally even before the week started. After the bearish divergence appeared on MACD and RSI went out of the overbought territory, the uptrend was exhausted and that signalled the end of the call-option buying cycle. There were two more attempts to continue the rally in the middle of the trading week, but upswings were limited and short-lived. The second lucrative cycle lasted 30 hours because all of the three indicators pointed a sustainable bullish momentum.

The current technical sentiment is in favour of the bulls as RSI is above the 50% threshold, Alligator is eating and MACD lines are above 0. The only concern is that MACD histogram turned negative, so a short-term bearish rebound is possible. However, given the long-term outlook, NZD/USD would not stop the bullish run until the target of 0.6600 is reached, so traders should wait for another intraday signal to renew the cycle of buying CALL options. Watch active hours, especially in New Zealand as the largest buying pressure goes from local speculators.

Weekly binary options technical forecast December 9 - 13

GBP/USD: Bullish continuation


We’ve already mentioned the bullish sentiment of the British Pound versus most of the major currencies last week, and the Sterling met our expectations. GBP/USD crossed several important levels from below, leaving such thresholds as 1.3000 and 1.3100 behind. Of course, the volatility is coming wrong with such sharp moves and this past week was not an exception to the rule. Several sideways consolidations were noticed on the hourly chart as the bulls had to regain the momentum.

The Average Directional Index had a positive surplus throughout the trading week, so the only metric to watch was the momentum. ADX mainline had shifted the sentiment several times, peaked on Thursday and dropped back below the threshold by Friday. Fast Stochastic oscillator acted as the secondary tool, pointing to accelerations and bullish breakouts. The most profitable cycle of buying CALL options for GBP/USD was on Wednesday as the pair charted a 34-hours rally on the upside.

The upcoming week promises further bullish action, according to the long-term analysis. However, deep bearish whipsaws are possible as GBP/USD has to come back to previously breached resistance levels, which should act as support barriers. The buy-dips trading approach looks the most attractive, while binary options traders should monitor intraday charts for reversal signals before entering the market.

Weekly binary options technical forecast December 9 - 13

WTI Crude Oil: Bullish recovery


The price of oil had a volatile trading week driven by fundamentals. The rate jumped right on Monday’s open, gapping through the weekend as rumours about a possible OPEC’s intervention spread among oil traders. The main target of oil producers was to prevent the price from sliding amid weak consumption forecasts. The only way to do that was to cut the supply volume and lower the level of daily production output. However, many members of the organization failed to do that before and this week was intriguing in terms of such a step from oil exporters. Looking at the four-hourly chart below, traders and investors would conclude that OPEC managed to solve the issue. The official announcement about the decision to cut oil output came in on Friday, and the bullish rally continued.

Technically speaking, the price of oil is in uptrend within the borders of the ascending green channel. The bearish breakout of the support trendline and the lower line of the Bollinger bands was fake, and the weekend gap confirms that. After the black gold retested the support, the bullish run began. The price breached the BB middle line and had a breakthrough signal on Thursday. After bouncing back to the support range, the rally continued.

The price of oil printed the highest weekly close price in five months, so the uptrend is likely to continue. Long-term binary options traders might consider buying CALL options with expiration time 24-hours and one week. The nearest target is placed at $60.00 per barrel, while the long-term resistance is coming at around $64.20.

Weekly binary options technical forecast December 9 - 13

Gold: Bearish reversal


The price of gold reflected the risk-off trading mode at the beginning of the past week. Global equities were sold off on the back of geopolitical and trade concerns, so the bulls of gold tried to reverse the downtrend. The upside spike was temporary though because the risk appetite came back to the binary options market and safe-haven assets were vulnerable to PUT option trading mode. The intraday chart below shows that after gold rallied towards the weekly high at $1484, the bulls failed to keep the momentum and the yellow metal entered the consolidation phase. There were several attempts to break out the channel to both sides, but only whipsaws left from them. Friday's rally of equities cased the sustainable demand for PUT options for gold, and the price went back to almost where it started the trading week. If U.S. stock indices kept renewing all-time high, then the price of gold might accelerate the bearish retracement towards $1450 and $1425 in extension.

Weekly binary options technical forecast December 9 - 13

USD/CAD: Volatile uncertainty


The USD/CAD currency pair had a crazy volatile price action this past week. The chart below is a 5-minutes timeframe reflecting the traders’ sentiment, which has changed at least two times. Technical indicators are useless in such an environment because both rallies were driven by fundamentals. Initially, the Canadian economy reported strong figures, which forced the Bank of Canada to publish a more hawkish statement than investors expected. The price of oil was also supporting the Canadian dollar and USD/CAD kept sliding. Some of the binary options traders predicted a bearish continuation and continued buying PUT options. But then an ugly Friday came. The Canadian Labour market report disappointed investors, while the BoC governor Poloz announcement his resignation in the first quarter of 2020. The market's reaction is displayed on the screenshot, USD/CAD soared 568 pips (+0.46%) in five (!) minutes.

Weekly binary options technical forecast December 9 - 13


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