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Daily Binary Options Analysis for January 11, 2017
EUR/USD binary option attempts a new retake on the psychological $1.0500 support. The approach of the level comes as a result of another bearish bounce from the orange bearish trend line of the currency.
The hourly chart of the EUR/USD shows the moment of the bounce from the orange bearish trend line (black arrow). The further price action led to a breakout through the hourly 20, 50 and 100-period Simple Moving Averages, which could be seen in the red circle on the chart.
It is important to mention that the recent EUR/USD price action resembles a Double Top chart pattern (green lines). Eventual price drop through the level of the bottom between the two tops is likely to confirm the authenticity of the pattern. If confirmation occurs, we will have sufficient reason to believe that the EUR/USD will decrease under $1.0500, retaking further lows.
Oil prices are conquering lower lows. During the last trading session, the Crude Oil has been losing from its price. After the commodity had broken its 1-month bullish trend line (orange), the price started hitting low after low until it reached a 1-month bottom.
We are looking at the H1 chart of the Brent Crude Oil binary option. After the trend breakout, the price has been decreasing following the green bearish channel you see on the chart. This channel brought the Brent to the level at $54.00, where the price found support and bounced upwards.
In this relation, the commodity is now testing the $54.50 resistance as well as the upper level of the green bearish channel. The current state of the commodity might appear to be a nice opportunity to trade short for another bearish impulse.
Later in the day, we expect the announcement of the United States Crude Oil inventories, which is likely to cause high volatility in the energy market. This release will determine the short term price action of the Crude Oil.
General Motors Co.
The automobile sector was among the gaining industries during the yesterday’s trading session. One of the bigger movers was General Motors Company, which price increased with $1.34 per share. As a result, the GM binary option expanded by 3.72% reaching a 19-month high.
Above you see the H4 chart of the General Motors security. The orange line you see on the chart is actually an already broken bearish trend, which the price has been following during the last three years. After the bullish breakout through the orange bearish trend, the price created a top at $37.60.
Then the price turned the bearish trend into a support bouncing upwards from it (black arrow). The followed price action caused the last week increase and the yesterday’s breakout above $37.6. This is a strong implication that the price might continue its increase further.
Ford Motor Co.
The other gainer we will discuss is Ford Motor Corporation, which is among the bigger movers too. The F binary option added $0.22 per share to its price, which boosted its value by 1.74%. As a result, Ford set a high as well – a 5-month top.
The H4 chart of Ford shows a situation similar to General Motors. However, the price action of Ford is still located below its orange bearish trend line from 2.5 years ago. Although the price went above the trend accounting the 5-month high, we cannot say that the trend line is already broken. To confirm a breakout an eventual reversal, we will need to see a break through the resistance at $13.20 that contains the last two tops of the security. Otherwise, we are likely to see a new price interaction with the pink 100-period Simple Moving Average, which the price used to spring toward the orange bearish trend line.