Weekly Analysis for Binary Options Brokers
EURUSD’s spectacular bull run has exceeded all expectations – climbing to over 1.19 earlier this week without taking much time to pause since the move started a few months ago, note Binary Options Brokers.
The 1.20 level is a very critical price and much closer to the longer-term fair value of the currency pair. Hence, further gains in the near-term seem unlikely much beyond current levels. Tomorrow’s Non-Farm payroll report may be just the catalyst that will start the retracement, however betting on it beforehand in the spot market doesn’t seem like a prudent course of action.
Instead, such events with a binary outcome can be better played via binary options especially when taking a contrarian trade because the trader can limit the risk of volatile price action in a much better way.
Binary Options Brokers analysis indicates that unless US economic data gets much worse from here, the EURUSD pair should take a pause in this uptrend especially going into September when both the ECB and the Fed are expected to announce major changes in their monetary policy stance. Ahead of such important events, traders like to take profits and that should help EURUSD go lower from here, though the retracement is likely to be gradual and shallow.
Technical indicators are suggesting the pair is at extreme overbought levels as well. With EURUSD just below 1.19, waiting for a deeper pullback before buying again seems like the better approach suggest Binary Options Brokers.
Traders can even go short here though it would better and safer be done with put binary options.
Momentum oscillators like the Stochastic and the RSI show overbought levels across multiple timeframes from the weekly to intraday charts. In addition, there is bearish divergence on the RSI coupled with the last push up, in the sort of like a wedge formation as shown on the 4-hour chart below. This also supports the case that a reversal is near.
Important support zones lower at 1.1650 and 1.15 while 1.20 is strong resistance to the near upside.
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Your capital may be at risk. This material is not investment advice
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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