Binary options on gold moved moderately higher for a second session, as mild retracement of US dollar and slight improvement in European markets sentiments allowed bargain hunters stepped in to buy the weaker prices.
Binary markets stabilized somewhat from initial selloff triggered last week by dismissal NFP’s report. This might give more leeway to focus on other bullish factors related to the same data such as Fed’s QE prospects but this assumption would require Eurozone’s woes not to stoke another phase of panic which in turn would provide more juice for dollar’s strength amid safe haven flows.
While EU finance ministers meeting offered little inspiration for binary markets, binary gold traders would eye performance of Spanish debt auctions to take clues over market assessment for latest European efforts to tackle the crisis. If Spain’s 10-year government bonds eased off 7% unsustainable level, binary traders would turn their focus toward the other side of the Atlantic. Binary options experts often prefer to deal with a few factors in the markets to enable them from building accurate evaluation over current situation. In other words, if recent measures taken by European leaders managed to cool growing concerns about the region’s instability, this could allow investors to price negative American data in a positive manner.
Technically, the chart shows some bullish signals after the underlying price managed to break initially above many resistance factors including 50% retracement of $1641-$1548 descend as well as cluster of moving averages on the 4H frames comprises 20, 100 and 200 MAs. Also, the RSI is steady above the midline on all time frames, indicating a solid bullish momentum so far. The $1600 is now the main challenge. Binary gold market over past few weeks was looking at this barrier as a conclusive hurdle to reassess the precious metal trends. Should the price manage to breach above the latter mark, it would activate many call options. However, we could only advise to buy call options after the breakout is being confirmed by a stable close or be retesting this psych handle as emerging support even though we favor the scenario of bullish extension due to strong upside bias on momentum indicators.
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.