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Daily Binary Options Analysis for February 21, 2017
The EUR/USD binary option did two crucial breakouts in a bearish direction. The first one occurred during the yesterday’s trading session when the price broke the lower level of its range through the $1.0600 support. The second one happened an hour ago when the EUR/USD closed an hourly candle below the next psychological support at $1.0550.
Above you see the H1 chart of the EUR/USD which shows the two breakouts in the red circles.
The yesterday’s price decrease acts as a resume of the bearish impulse caused by the bounce from the $1.0680 resistance. Since the $1.0550 support got broken downwards, we now expect the price action to interact with the next support at $1.0520 that marks the end of the previous bearish trend located in the green bearish channel. If this level gets broken downward, then we are likely to see a further price drop and appreciation of the US Dollar versus the Euro.
Oil prices accounted for an important increase during the yesterday’s trading session. In the past couple weeks, we have been discussing a pattern that resembles a bearish channel (orange). After the oil had bounced from the green bullish trend line again, it shot through the upper level of the orange channel setting an 11-day high.
The H4 chart of the Brent binary option shows that the price action is currently meeting the resistance at $57.00. If we see a breakout through this level, then the Brent will set a 2-week high, implying potential increase to the next high at $57.50. Otherwise, a new drop to the green bullish trend line will be expected.
We should not forget that the price action might correct to the already broken upper level of the orange bearish channel before undertaking other bullish impulses.
Gold prices started a consolidation after the interaction with the $1,245.00 resistance level in the upper-level area of the blue Expanding Triangle. As a result, the Gold has formed a pattern that resembles a Double Top.
The H4 chart of the commodity shows you the Double Top pattern marked with the green lines. As you see, the price action started a new decrease after creating the second top. As a result, the price is about to interact with its pink 100-period Simple Moving Average.
We still cannot confirm the breakout through the blue bearish line since we have consolidation in this area. In this relation, if the price action breaks the pink 100 SMA and the support at $1,220.00 that plays the role of a neck line for the Double Top pattern, we will have sufficient reason to believe that the price is bouncing from the blue level initiating a fresh bearish impulse.
The price of the most traded cryptocurrency created a crucial breakout in bullish direction during the yesterday’s trading day. The Bitcoin binary option expanded through the resistance at $1,050.00 that marks the previous big high from 11 days ago. This way, the BTC reached a 7-weel high versus the US Dollar.
The H4 chart of the Bitcoin shows that the breakout appears as a continuation of the current bullish impulse caused by the bullish price bounce from the green bullish trend line of the cryptocurrency.
Having in mind the strength of the current bullish impulse, we believe that the Bitcoin might attempt interaction with its all-time high above $1,090.00 from the beginning of January. Although the price set an all-time high then, the created top is located in the $1,090.00 resistance area that marks the first remarkable high of the cryptocurrency from the end of 2013. Therefore, we consider the $1,090.00 level to be a very strong resistance.