Binary AUD/USD is vacillating recently. The volatility in the binary gold is the direct reason for this fact. The Aussie is a commodity currency which value depends mainly on the greenback. The yellow metal is drifting lower. It will have a negative influence on the binary currency pair. The binary option traders are supposed to start buying binary put options.
Binary options on AUD/USD are forming a chart pattern called Bearish Butterfly. There are four waves intertwined in the development of the underlying instrument. The first wave comprising the zone between 1.0220 and 0.9970 has been retraced 61.8% at 1.0125. It is a typical Fibonacci number for the middle point. The wave from 0.9970 to 1.0125 reached a retracement of 78.6% at parity (1.000). The fourth wave is the most important of the model. It is the combination of two Fibonacci grids. The first one is 224% of extension of the third wave from 1.0125 to 1.000. The second one is 127.2% of extension of the first wave from 1.0220 to 0.9970. The model is completed by the book.
The binary traders should take it into consideration and wait for a decisive downside move in order to buy binary “put” options. Potential targets are 1.0220, followed by 1.0125.
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.