Market Review: Weekly Trading Signals Alerts ( Currencies, Gold, Oil, Dow ) July 8-10th

Last Update: 10th july 09.00 GMT

Currencies: EURJPY

A downside break of the symmetrical triangle looks to be on the cards as shown in this chart below:

EUR-JPY Chart on 10th july 2013

EUR-JPY Chart on 10th july 2013

 

The break should be traded if it is complete. The candle in view has to close below the lower trend line before the trader can initiate the PUT binary options contract. Please note that the symmetrical triangle has a neutral bias and it is possible that the asset may just bounce off the lower trend line and start to head upwards. The behavior of the candle in view (the last candle) will determine the play for the asset.

Currencies: EURUSD

The EURUSD seems to be on the path of a short term bounce from the lower trend line of the descending channel, having been in a downtrend for some time now.

EUR-USD Chart on 10th july 2013

EUR-USD Chart on 10th july 2013

The play here is pretty straightforward. A bounce off the lower trend line on this 4 hour chart would prompt a CALL trade while a retreat from the upper trend line would signal a PUT trade. It is better to play the PUT because the prevailing trend is a downtrend. If a true bullish recovery is on the cards, the trader must wait for a clear breakout of the upper trend line in the channel for this to be assured. Otherwise, the bias for this trade tilts towards setting a PUT on the upper trend line. This may be followed down the road by a break of the lower trend line if the asset resumes its prevailing downtrend. Expiry time for trades must be at least 8 hours.

Currencies: GBPUSD

Due to the close correlation between the movement of the EURUSD and GBPUSD, a similar situation is also playing out here.

GBP-USD Chart on 10th july 2013

GBP-USD Chart on 10th july 2013

Once more the bias is towards the trades that follow the downtrend. Wait for the asset to retreat off the upper trend line before setting a PUT with an 8 hour expiry time. It is only when the asset clearly breaks above the upper trend line that a CALL trade can be initiated. The next PUT trade is therefore some hours in the making.

Commodities: Gold

Gold has been off our radar for some time because it was simply too volatile to trade. However, after a long period of free fall, the unexpected increase in the Chinese Inflation data has spurred some gold buying as an inflation hedge. Coupled with the ascending triangle forming on the chart, our bias for gold is bullish.

 

Gold Chart on 10th july 2013

Gold Chart on 10th july 2013

 

We see gold heading upwards, so a CALL trade with a 6 hour expiry should be taken immediately. Otherwise the trader can either wait for the asset to pull back towards the lower trend line, or wait for a clear break of the upper trend line (which will surely occur based on the present fundamental and technical indications) to set the CALL trade.

Commodities: Crude Oil

Following the API data, oil is decidedly higher. Our expectation for this asset is for it to close the week higher than where it started the week. The trader here is a CALL trade set at 104.30 or anywhere around it, with a 72 hour expiry.

Indices: Dow (DJ30)

The Dow is close to a strong resistance area. It will probably trade lower on Wednesday, so the trade for the Dow is to set a PUT binary options trade at 15300 or anywhere around that level. Expiry should be set for the close of the day.

Currencies: AUDUSD

The Aussie is likely to show some transient bullish recovery. The trade for the AUDUSD is a CALL trade from present levels of 0.9208. The trade should not be executed until price has broken through the closest short term resistance of 0.9228. Between 0.9228 and 0.9330, there is room for bullish movement. Once price gets to the psychological level of 0.9300, the trade should not be taken. So safest levels to place a CALL trade are between 0.9230 and 0.9250.

 

Recommended Broker: Banc de Binary

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