Binary USD/CHF started the week on a higher note. The instability of the binary financial markets spurred the appreciation of the binary currency pair. The correlation between the binary indexes and the underlying binary asset is lately negative. Should the main binary indexes lose ground, USD/CHF would appreciate. The binary trader is aware of this fact and manages to trade with more confidence and to be profitable.
It is interesting to make some tests. It is useful to find the interconnections between the binary instruments. This could be the path to a successful trading career. The binary trader should make efforts to gain the most knowledge he/she could get. This make the difference between winners and the losers. There are specific interconnections between the binary markets. They are valid for longer periods of time. However, they tend to change sometimes. In times of huge turbulences some binary assets move faster than others which could result in a distortion of the typical behavior.
The binary options on USD/CHF are closed in a symmetrical triangle for the last 3 months. The boundaries of the formation are well-defined. The resistance is drawn from 0.9400 through 0.9339. The binary options made a third test of the trend line yesterday managing to stay below it. The support is drawn from 0.8940 through 0.9000. The top of the pattern is approaching and the volatility will start decreasing. The moment for the breakout is on its way.
There is a strong resistance inside of the pattern. The marked level is at 0.9230. It has been tested four times so far. It is highly possible to resist this time as well and trigger a downside move. The triangle is formed as a correction of a downside wave from 0.9580 to 0.8940. Normally, it is a bearish signal. It will correspond to an increase in the binary indexes which is a probable scenario.
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.