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Binary OIL, XOM and the USD

Stocks were down on Friday as binary options traders were probably waiting for the release of the US Non-Farm Payrolls. However, this important indicator, normally set for release on the first Friday of every month, will be released only next Friday. This due to the Labor department’s release rules which require there to be a Wednesday on the given week of the release and this past week there was no such condition met so the release will only be this coming Friday. Binary traders should actually be pretty happy as the recent declines in stock indices like the DOW provide new trading signals ready to be taken advantage of tin the coming days.

We are still waiting for the price of the Exxon Mobile (XOM) stock to head past 87.5. However, with the price of oil heading back towards 105, we don’t see the happening in the coming days. We still recommend keeping watch on this exciting stock as soon as it breaks above, binary options will see a very profitable trade. What’s great about following a stock like XOM regardless of a trading signal is the fact that it is correlated to the price of oil. Albeit, not a 100% correlation, but the fact that the two are tied is undeniable.  So following XOM means you are now following the price of oil. And what’s more interesting is that if you follow the price of oil, which is trading near 106.4, then you also need to know what’s happening with the US Dollar. The USD is mostly followed against the EUR (EUR/USD) which is currently trading near 1.3200. It fell below the support at 1.3275 on Friday which should have helped push  the price of oil higher because as the dollar weakens, the price of oil tends to increase in value and vice-versa.

Binary options trading on EUR/USD 4/3/2012

Binary options trading on EUR/USD 4/3/2012

So today, binary options traders may wish to focus on this selection of assets. Most important today will likely be the price action on the EUR/USD. We expect pricing to remain below the (now) resistance at 1.3275. The fact that the forex pair is now back in the old range (the one that was prevalent for most of the first 2 months of 2012) is good news for binary options traders as well as forex trading as it provides many EUR/USD trading signals.

Apple (APPL) stock has a trading signal available for binary options traders willing to take on higher levels of risk. With a BUY signal available at a break of 548.21, binary traders may like this trade. It has not provided very many low risk trades of late as despite the fact that the stock price continues to rise, it doesn’t always break a technical level. So despite the fact that nearly any options taken to the high side would have made money, it was always hard to decide if this was the case or not. We recommended a number of these trades in the last few days, and today is no different. Just remain very cautious when trading in this manner. It comes with more risk 

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