The Russian Rouble kept strengthening versus the US dollar on the back of growing oil prices. Although the weekly rate change was not significant, and the USD/RUB currency pair remained almost flat compared to previous volatility spikes, further downside pressure is expected for the week ahead.
The technical sentiment is bearish as the four-hourly chart has a descending triangle pattern with a series of lower peaks and a horizontal base as a support range. The screenshot below also shows that USD/RUB entered into the key range on Monday morning and if the bears were able to breach key support handle at 72.43 roubles per dollar, then the selling pressure might accelerate. However, binary options have to keep an eye on oil prices, as if the black gold reversed the action, USD/RUB might find support from call option buyers.
Elder’s Force Index dropped into the negative zone after hovering around the zero level recently. That could lead to further downwards action in the near term. Meanwhile, the momentum indicator has an upside spike, pointing to a larger trading volume and a potential breakthrough in the support mentioned above. Put options with 4-hours expiration look most attractive for the upcoming week.
The most liquid cross-rate in the binary options market failed to breach the horizontal static support at around 0.8670. As a result, EUR/GBP bounced up amid robust demand for call options with short-term expiry. Besides, Monday’s open showed that the bulls are seriously intended to reverse the long-term downtrend as the rate breached the upper band of the trading range highlighted on the screenshot below.
The pair is testing the SMA9 support curve and the next target for the short-term retracement could be the Simple Moving Average with a period of 21 bars. If the call-option buyers were able to limit the downwards pressure, then the action could reverse back to bullish. Otherwise, a deeper slide might occur.
Williams %R oscillator went off the overbought territory, reflecting the recent red candlesticks. That might be an additional trigger for binary options traders to start looking at attractive entry points at around the 50% of the oscillator level.
Kiwi traders were caught by surprise last week as the Reserve Bank of New Zealand was much more dovish than the majority of market players expected. Although the regulator left the interest rates unchanged, the central bank’s officials announced an enlargement of the bonds’ buy-back program by 100%. That decision caused a spike in the volatility and additional demand for put options as binary options traders were pricing in additional liquidity to be pumped into the financial sector.
Technically speaking, the NZD/USD currency pair is in the rebound mode, according to the 4-hourly chart below. Parabolic SAR’s dots jumped above the rate, underlining the shift in the sentiment. ADX and DI indicators have narrowed the negative surplus, while the mainline retraced from the latest peak. That means that the bullish momentum is getting exhausted and traders could see further weakness of the pair. In contrast, Stochastic RSI performed a bullish crossover and headed north, which could lead to a demand for call options in the short run. So the best chance to start a trading cycle of buying call options with 4 hours expiration might be to wait for an opposite signal of the oscillator in the overbought zone.
The price of gold soared last week, breaching the key technical resistance level at $1737 per ounce. That was the highest close rate on the four-hourly timeframe, and as far as the bulls managed to lift the gold price above it, the uptrend accelerated. On Monday morning, gold was trading at $1762 per ounce on the back of call-option buyers’ domination in the market. The recent fundamental events showed that the US economy contracted much worse than expected, so it’s worth expecting more liquidity to be pumped in the financial system by the US Federal Reserve. Such expectations drive the price of gold on the upside.
From a technical point of view, the price of gold is in a bullish continuation mode as the Ichimoku Cloud indicator has all of the factors in favor of such a scenario. The leading span is clearly bullish and the positive surplus is growing, both lines are above the cloud and rising, and the price itself stays above the Conversion line support curve. Call options are preferable with any expiration time.