Most traders and investors expected that the Fed’s meeting minutes will reveal premature tapering of the central bank’s accommodative policy, which includes QE. Therefore, most investors started taking profits and reducing exposure. The profit-taking sellout was replaced with careful purchases.
Later, weak sales changed for purchases amid a weaker dollar. It should be noted that the technical picture is the following: the price touched 1350 and rebounded from it. This clearly indicated by the chart below, courtesy of Masterforex-V Academy.
At the same time, there was no aggressive sellout. Consequently, the daily bar closed almost at the same level with the close price of the previous daily bar. Most traders assume that the price will continue the current trend. The scenario implying any major correction will be implemented if the price breaks and consolidates below 1350, the Binary Option Department of Masterforex-V Academy assumes.
Therefore, with a glance at some bullish psychological bias of the market seen on August 20th, the Binary Option Department managed to conduct and lose a winning trade after the price rebounded from the local MAs on the M5 chart. As you can see, the call option expired within 2 hours.
The trade was closed prematurely since there was no possibility of further monitoring amid the fact that the price started moving towards the strike price. Still, the traders managed to capture 90% of the premium. You can watch the video proof of the trade after becoming a student of Masterforex-V Academy’s Department of Binary Option Trading.
