Binary options on gold stayed mostly in range Tuesday. Even though the precious metal moved off its 2-week’s low hit earlier on Monday’s session, but there was no follow through buying so far. The binary commodity lacks momentum for a meaningful recovery as the overall negative outlook over the fiscal and economic situation in Europe still adding more juice for the greenback’s strength which in turn a traditional bearish factor for binary gold markets.
Furthermore, the uncertainty level among global binary traders is too high to suggest a near move away from the cash safe haven assets. Binary gold to catch a decent demand during upcoming weeks, has no choice but to see another round of quantitative easing program from the Federal Reserve. If not, binary bullish traders will remain sidelined and could only play the role of bargain hunters whom step in markets just to buy the falling prices. Also, short-lived rallies might come with downbeat US data which are also related to Fed’s stimulus prospects, as persistent deterioration in the economic indicators should fuel pressures on further policy easing. However, without a real action in hand, any potential recovery can’t be translated into the longer run.
As for technicals, the daily chart shows the binary instrument trading in a sideways channel that commanded moves since mid-May. In the bigger picture, we may note the binary metal is forming a flag pattern. A corrective phase has followed the broad downleg off this year’s highs. And with sideways retracements enter the third month, binary traders should expect that the current directionless trades will be soon resolved either to upside or downside. We will pay a close attention on the $1555 key pivot. It is situated on the short-term bull trend, also cracking this support coupled with June’s bottom at $1548 would volatile the platform of a 2-month range. Hence binary options brokers could anticipate large amounts of put options with the clearance of mentioned supports, as such dip at least would target the yearly low at $1526 either to announce a major reversal and complete the pattern formation or to test bulls’ strength after failed several times to push beyond the near-term ceiling of $1640.
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.