A Brief Look At Binary USDCAD

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A Brief Look At Binary USDCAD

Victor
Traders of binary options in the USD/CAD had a lot of opportunities to make money throughout the week. In the first half of the week the Canadian dollar lost some ground against its U.S. counterpart, benefitting investors who traded binary put options, as market participants were reluctant to buy the Loonie at the highs it touched after the ECB and Fed’s bond-buying programs were announced. On Monday, the USD/CAD started the session close to its 100-period moving average and had no problems moving above it. After advancing to 0.9817 in the afternoon, however, the currency pair pared almost all of its gains, finishing slightly above the aforementioned moving average. On Tuesday, bulls returned to the market and started buying the USD/CAD ahead of the retail sales reports, which were scheduled to be released later in the day. Both the retails sales and the core retail sales surprised on the upside. The total value of sales at the retail level rose by 0.7% in July, sharply higher than the modest 0.2% increase analysts were projecting. When automobiles were excluded from the equation, the increase was still pretty decent – 0.4% and again better than what economists were expecting. The Loonie shot up against the greenback after the news hit the wires with the USD/CAD pushing below both its 25-period and its 100-period moving averages. Investors, who chose to buy binary touch down options, were the one to take the biggest advantage of this movement as the drop was rather sharp. But after market participants had some time to evaluate the news they shed their holdings in the Canadian dollar and moved back to its U.S. counterpart. The USD/CAD moved higher, closing slightly below the highs of 0.9814 for the session. On Wednesday, the rally in the currency pair continued as the prices of commodities extended their early week decline. The USD/CAD touched highs of 0.9859 as crude oil traded below $90 a barrel for the first time in over two months. At the end of the trading session, however, bears returned to the market as bulls resorted to some profit taking and as commodities advanced in a corrective move. The Loonie pared some of its losses and the currency pair slipped to 0.9841. The Thursday session was the strongest for the Canadian currency in the whole week as industrial and precious metals posted very decent gains and as oil climbed above $92 per barrel. Buyers of binary put options made money all day long as the USD/CAD pushed below its 25-period moving average and tested the support at the 50-period moving average, but failed to break it. The currency pair, however, finished close to the lows for the session, paring all the gains it posted in the first half of the week. Today all investors are eyeing the GDP data, which is scheduled to be released later in the day and which can have the potential to stir the market. Analysts are expecting the Canadian economy to have grown by 0.1% in the month of July, down from the 0.2% it grew in June. Meanwhile, the greenback managed to recoup some of the losses it posted against the Loonie, rising from rates of 0.9777 to the current rate of 0.9803. The move might be seen as a correction as it mirrors the corrective movements in all major commodities.

Technically speaking, support in the USD/CAD is provided by the 50-period moving average, while resistance stands at the 25-period moving average at 0.9808. Oscillators are mixed with the relative strength in mid-range and the stochastic in oversold territory, issuing buy signals. Those signals, however, are at odds with the signals the MACD is issuing. The latter has just retracted from the highs it touched in the middle of the current week, which were also the highest levels it has touched since late July.

Source: binaryoption