In many cases the currency market is heading the stock market by its trend, it happened at the financial crises of 2008 where currencies experienced downward trend while the stock market followed afterwards.
In the meantime there is no correlation between the markets, in-fact we see the opposite reaction, the sentiment is so negative with just a few weeks after the ‘Brexit’ while the S&P is touching all time records.
At this point the more the market is hitting new records, the danger of experience a crises is more likely to happen, it can be worse than the financial crises in 2008.
For you as a binary option trader it is an advantage, the market is volatile and bringing many opportunities for intraday binary options, and yet, you should take into account all scenarios.
To help you with how to take advantage of this period we have gathered here some of our best strategies:
Here is a review for the upcoming week:
EURUSD
We’ve define the boundaries post the ‘Brexit’ event, while we recommend to look for PUT options opportunities, the currency should at least continue and reach the lower boundary, when it does we should analyze again to decide the odds for the currency to continue the downward trend.
GBPUSD
The currency is super volatile, for now, there is no point to bet on the direction just to follow some intraday strategies for 1hour timeframe and below.
In the monthly chart you can see the currency is out of the normal Bollinger boundaries, but it didn’t reach to a point where it triggers for a retrieve
Bottom line – take the advantage of the volatile market and trade the intraday options
Gold
When there is uncertain in the market, traders are more likely to buy Gold, that’s why we see an increasing trend in this period of time, if you would like to make some money out of it you need to wait for the right moment, in the below chart I simply marked the lower boundary, we can expect the gold to hit the resistance line to trade on Call options for long timeframe
S&P
As much as it is awkward, the stock market is experiencing flourish while there is a currency crises especially in the EU, the index is being market between the two lines of its trend, if the index will breakout the support line it will be a sign for changing trends (not only for the S&P) in the meantime it’s business as usual
Oil
One of the most interesting financial assets is in the commodities – the oil, after a huge decrease and a retrieve, the price now is at $46.9 for a barrel, reviewing the daily chart the oil has a resisteance trend line, if it will breakout this line we are going to experience higher price levels, in the chart below you can see the resistance trend line
The interesting thing is what’s happening in the 4hours chart, the oil is being trade on a shrinking triangle shape, it’s a template that brings afterwards a sharp and volatile move, you need to be aware to that and in the meantime you may want to take advantage this template by using boundary option as known as ‘Range High Low’
All-in-all, it’s time to enjoy a volatile market and use some great intraday strategies.
Wishing you a successful week
