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GEO POLITICS HEATING UP EUR/USD

BITCOIN 781.950 11:20 03.12
BitCoin/CNY 5382.550 11:20 03.12
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BitCoin/CNY 5383.210 11:00 03.12
BITCOIN 782.136 10:40 03.12
BitCoin/CNY 5383.835 10:40 03.12
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BitCoin/CNY 5384.175 10:20 03.12
BITCOIN 782.498 10:00 03.12
BitCoin/CNY 5386.325 10:00 03.12
BITCOIN 780.288 09:40 03.12
BitCoin/CNY 5371.115 09:40 03.12
BITCOIN 781.315 09:20 03.12
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By: Adam Stone
June 17th 2014 6:05am GMT, London UK
 
Geopolitical concerns are the main factor now as the markets exhibit increased volatility. The worries about Iraq’s future after 3 cities north of Baghdad fall to Al-Queda are weighing heavily on the markets, especially those in Asia. Add to this the as well as the concern about the fact that 3 unarmed civilians were kidnapped in Israel by terrorist extremists which could lead to a severe escalation in this affair as the military searches for the boys. The heating up of the geo-political situation in the middle east is the main culprit in equity prices falling in Asia and it could be more of the same today in the US.

However, this news was already known yesterday and it had little effect on final results in the US markets. The volatility though is and should continue to be of great worry to traders. After all, if you are trading intra-day expiries, then the up and down motion of the markets could kill off ordinarily good trades. This is especially true of US equity indices. The S&P, for example, did close the day above the previous close at 1937, up just about 0.08%. This is really not enough to constitute a serious enough follow-through to allow traders to consider the uptrend firm. It’s not and binary options traders will do well to err to the side of caution when trading equity indices today like the S&P, which we love to cover.

The reason the S&P is so heavily covered by this daily analysis is due to the bellwether effect of the S&P on the rest of the markets. In other words, as the S&P goes, so to will the rest of the world in quick succession. So with the uptrend now in jeopardy it is understandable that the USD is taking a beating.

The EUR/USD forex pair is currently trading near 1.3562 which is a long way from where it looked to be heading just 2 days ago as the pair looked to break below the support at 1.3515 but it hasn’t been able to come close since very early in the session yesterday. With world pressures increasing and the US ready to deploy a small force into Iraq, the value of the USD is likely to continue to creep downward against the majors. Binary options traders will do well to remain focused on the downtrend for the time being whilst keeping a very close eye on the major supports and resistances.

EURUSD with binary options 17-6-2014

Specifically, the current levels of greatest interest for binary options traders as the 1.3515 support as well as the more local support of 1.3553. The resistance, which has yet to be tested at 1.3590 is probably the most interesting of levels for the day ahead. Any test might be used to pivot reversal signals. However, savvy binary and forex trades will likely wait patiently for a solid break of the resistance for the chance to take up options with much lower risk. Longer term expiries are likely to be the way to go with small to medium sized trades.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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