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Daily Binary Options Analysis for January 6, 2017
The EUR/USD binary option accounted for an increase during the last couple days. The increase came after the price action reached a new 14-year low at $1.0339. The price bounced as a result and started moving toward a bearish trend, which connects the last two big tops of the price action.
We approach the D1 chart of the EUR/USD in order to see the yellow bearish trend line. The price is very close to meeting the trend line. Also, we should not skip the fact that the red 50-period SMA also goes through the zone of the yellow bearish trend. Therefore, we believe that the price action will find a very strong resistance in this area, which might lead to a new bearish bounce, followed by the creation of new lows on the chart.
Later in the day we expect the announcement of crucial economic data coming from the United States. We expect to get the US Nonfarm Payrolls as well as the Unemployment Rate in the country. These events are likely to cause high volatility to all USD-related Forex pairs.
The Oil prices logically held the bullish price move after the United States announced lower than expected Crude Oil inventories at -7.051 million barrels. As a result, the Oil is currently approaching a resistance area on the chart.
The H1 chart of the Brent binary option is showing us the newly established bullish impulse after the price interacted with its big orange bullish trend. Notice that the increase resembles a channeling price action, which gives us a better picture about the bullish intensity on the chart.
The price is currently interacting with the zone, which indicates the resistance level at $57.50. If the price breaks this level, we will have a sufficient reason to believe that the increase will continue at least to the high at $58.50 per barrel. On the other hand, if the $57.50 level holds, then we are very likely to see a bearish break through the blue bullish channel, followed by another price interaction with the orange bullish trend.
The Golf price keeps increasing after breaking the upper level of its green bearish channel. We remind that this happened after the price action reached the lower level of a big Expanding Triangle (blue).
Therefore, we approach the D1 chart of the Gold binary option. You clearly see the breakout through the green channel, which looks small here, and the followed bullish run. The Gold is now being traded near its $1178.00 resistance level and it looks like the price is heading for the psychological $1200.00 resistance. In this case, we will probably see a breakout through the red 50-period Simple Moving Average.
After all, since the price bounced from the lower level of the big blue Expanding Triangle, we have a sufficient reason to seek interaction with the upper level of the pattern.
The Bitcoin price reached a new all-time high couple days ago. This happened when the price managed to peak above the previous all-time high from 3 years ago at $1090.00.
The all-time high could be seen in the orange ellipse on the 30-minute chart you see above. The high is expressed by the small candlewicks above the $1090.00 resistance.
However, after reaching this level, the price collapsed with a little more than 20% just for one day. Some say that this collapse came because investors saw the digital currency at its highest possible level. Others say that the drop might be related with the Chinese attempt to strengthen the Yuan, which is currently rising due to strong economic data. After all, we should not forget that most of the Bitcoin trading comes from China.