Market Review: Weekly Trading Signals Alerts ( Currencies EURUSD, GBPUSD, AUDUSD) June 24-28th

Last Update: 24th june 14.00 GMT

Currencies: AUD-USD

The AUDUSD is in a tight consolidation band on the hourly chart. This asset has been in a downtrend for some weeks now (seen on the daily chart), so the asset is consolidating as short traders take profits.

We can see from the chart above that the asset is presently in “no man’s land”; midway between the trend lines forming the consolidation area on the hourly chart. The best bet is for the trader to wait for any of the several scenarios to take place:
The asset may stay range-bound for another day or two. In that case, the trade would be to place a PUT order when the asset gets to the upper trend line, or to purchase a CALL contract if the AUDUSD dips to the lower trend line. The PUT is confirmed if the Stochastics oscillator is >75, showing that the asset is overbought. The CALL is confirmed if the Stochs is <25 at the same time the asset is at the lower trend line, confirming an oversold condition.
If there is a break of the upper trend line (i.e. AUDUSD closes above the upper trend line), allow the asset to attempt a return to the upper trend line (now acting as a support), and purchase a CALL option contract with a 6 hour expiry time. If the asset breaks below the lower trend line, allow for it to attempt a bounce up to the lower trend line (now acting as a resistance), then purchase a PUT contract with a 6 hour expiry.

AUS-USD Charts on 21th june

AUS-USD Charts on 21th june

Currencies: GBP-USD

There is a very clear falling wedge pattern on the GBPUSD hourly chart which is ripe for the picking.

The pattern is already at the point of convergence of the two trend lines, so this is a good time to take the CALL binary option with an expiry time of between 12 to 18 hours.

 

GBP-USD Chart on 21th june 2013

GBP-USD Chart on 21th june 2013

Currencies: EUR-USD

The EURUSD is also in a falling wedge pattern on the hourly chart, though not as pronounced as we see in the GBPUSD. The convergence is not yet complete, as the price may still fall to the lower trend line from present levels.

The suggestion here is to watch the trade until the EURUSD gets from its present levels to the lower trend line of the falling wedge. If the price bounces from the lower trend line (look for this on Tuesday or Wednesday), then open a CALL trade and ride it for at least 24 hours.
If the price of the EURUSD breaks below the lower trend line, then the pattern is negated and the trader should rather allow for an upward pullback after the break back to the lower trend line (now acting as a resistance), and the trader can bet on a PUT contract with an expiry time of 12 to 24 hours.
Traders must not force the market but rather wait for one of the two scenarios painted above to make the move.

 

EUR-USD Chart on 21th june 2013

EUR-USD Chart on 21th june 2013

 

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