Hello Traders,
The market is experience one of the most interesting periods in finance history, as known as ‘The big experiment”, it called that way because it is the first time in history the rate has been lowered to around zero levels, some of rates are in-fact negative.
Last week, Fed raised the rates for USD currency, it was not a surprise, yet, it has an effect on the market, all major indexes decreased and all major currencies where followed by the strength of the USD.
Eventually, EUR/USD decreased by 250 pips since,as a binary trader you should been taken this trend into account and to wait only for setups for ‘Put’ options.
EURUSD 15 minutes since Fed rate announcement
On the daily chart EURUSD broke out the long term support line, yet, the breakout was not unambiguous, it still might turned out as bear trap where a breakout brings in lots of short traders (bears) and when a trigger appear, it changes its direction toward a higher EUR price, this switch in direction will cause lots of bearish traders to drop their position which will increase more significantly the price of the EUR.
EURUSD weekly chart
How to trade the EURUSD using binary options in the current situation?
First, in order to be on the right side and to make sure the trend will continue downwards, there should be a real sin for a breakout, where most of the weekly candle is below the support line, in this case we don’t see it. my estimation is that the EUR will continue to ‘play’ around the breaking point before it decides about its direction.
In the meantime, use short term positions, such as 60 seconds strategy for binary options.
GBPUSD, this currency has also affected by Fed’s decision, in this case the effect was not significant as in the EURUSD, in-fact it’s keeping the uptrend trend, in a tunel pattern between support and resistance lines.
GBPUSD Daily chart
My bet, and it’s only a bet that the GBPUSD will visit again the support line before the market will decide about if it keeps the uptrend or breakout the support line.
In case it doesn’t break the support line it should continue the uptrend at least to the upper line of the tunnel template.
Keep in mind that on the monthly chart the GPBUSD is still on decreasing trend
GBPUSD monthly chart
S&P – the index experience a small decrease since Fed raised USD rates, for now, there is no efficient way for investors to gain interest on their money except the stock market, so as long as currency rates remain low the alternative of stock market will be more relevant for investors.
That’s why when currency rates are rising (especially the USD) it decreasing the stock market prices.
S&P 1 hour chart
For now it doesn’t show a significant change but i’d guess the effect will accumulate as time goes by.
the S&P might surprise us with a sharp move toward lower price, for now it is difficult to agree about any direction.
Oil
It looks like a real breakout, after a small breakout from last week, it’s the first time we can notice a daily candle is crossing the resistance line, meaning the oil is towards higher prices while it keeps the increasing trend.
Oil Daily chart
Not all of the brokers provide the ability to trade the Oil, personally, i’ts one of my favorites, the best and reliable binary option broker i found is 24 options that provide also cruid Oil tradings for binary options.
Have a great week and successful tradings.
