Gold Rose Slightly Tuesday As Consolidation Starts To Tighten
Binary Options Strategy | Apr 22, 2015 06:31AM ET
The session on Wednesday will feature the Bank of England releasing its Monetary Policy Committee Meeting Minutes. With this, there shouldn’t be too much in the way of surprises, but this can cause a bit of volatility in the FTSE and the GBP/USD pair. Any hints of dissension in the voting will be crucial.
The FTSE 100 tried to rally during the session on Tuesday, but found the 7100 level be far too resistive yet again. With this, it appears the market is going to pull back to try to find a bit of support, as the market should eventually have enough bullishness to break out above that level. We do believe that the FTSE will go higher, but expect volatility in the meantime. We are buyers of calls on short-term supportive charts.
Looking at the Gold markets, we rose slightly during the session on Tuesday, as the consolidation starts to tighten. With that, we believe that the market is signaling that it wants to break out in one direction or the other, and the first impulsive candle outside of the current $20 range has us buying the appropriate option. In the meantime though, keep an eye on this market as it looks like it’s winding up to make its move.
The EUR/USD pair initially tried to fall down during the session on Tuesday, but found buyers below. With this, we think there are put buying opportunities on signs of resistance if you look at the short-term charts. After all, the longer-term trend is most certainly to the downside, and with that we do not want to go long via calls, we would rather just wait for the appropriate setups to short the market via puts.
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