Binary Gold could not manage to break higher. The binary traders have expected the breakout to occur at current levels. However, it turned out to be just a continuation of the volatility. The binary options on the underlying trading vehicle are closed in a range of $70 for almost 2 months. It is a good zone for trading but it is difficult to take the best decision every time. The expected breakout is weighing on the psychology of the binary option buyers.
Binary commodity decreased by almost $30 in the last hour of trading. It is the result of the appreciating greenback. The binary options touched $1625 which is a short-term resistance and the volume of binary “put” options spiked significantly. The latter level represents 88.6% of retracement from the previous wave from $1633 to $1547. It seems as though the downside pressure would increase and a new test of the lower band of the price range is highly possible.
The Bollinger Band indicator is tightening on a 4h basis encompassing a zone of $35 for now. Potential short-term targets are $1596 (38.2% of retracement from the upside move from $1547 to $1625), followed by $1588.
The information in this 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.