Binary USD/CAD is poised to experience a downside pressure. The binary options are losing steam and the binary put option volume is exploding. Binary traders are watching closely the development of the binary currency pair in order to capture the moment for increasing their positions. However, it is a little bit tricky situation because the underlying instrument is flirting with a short-term resistance. It is important that the binary options are retreating from the trend line.
The binary currency pair is trading in a downside channel so far. The boundaries of the channel are well-defined. The resistance is drawn from 1.0425 through 1.0325. The support is drawn from 1.0200 through 1.0100. Currently, the binary options are in the middle of the range. The last 2 candles are bearish. They formed lower highs and lower lows. It is a typical downside combination. Moreover, the trend line drawn from 1.0350 through the candles seems to be important pushing down the underlying asset.
Furthermore, EMA21 is above the binary options. The binary traders should know that it plays a significant role as a support or resistance for the binary currency pair. It is highly possible that the binary traders witness one more test of the support at 1.0050.
Disclaimer:
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.
