December 31st, 2014 6:45am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: AUDUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 0.8200
• Upside Potential: The upside potential for this binary call option is 240 pips to 0.8440
• Downside Potential: The downside potential for this binary call option is 110 pips to 0.8090
The AUDUSD currently enjoys a healthy drift to the upside and away from its intra-day low of 0.8087 which was reached on December 23rd 2014. This drift higher moved the AUDUSD out of extreme overextended territory at which it arrived as a result from its latest corrective phase. This phase emerged from its intra-day high of 0.8447 which was reached on December 3rd 2014. The drift higher additionally created an ascending support level which guided this currency pair back inside its horizontal support level.
Price action is now trading near the top of its horizontal support level from where a sideways trend may emerge. The AUDUSD is expected to trade sideways until its ascending support level can provide the necessary catalyst for a breakout above its horizontal support level. Binary options traders can take advantage from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.8200 for a risk/reward ratio of 1.0/2.18.
Volatility has been contained during the drift higher and back inside its horizontal support zone, but is expected to increase as sellers will step in to prevent a breakout. The current drift to the upside reached an intra-day high of 0.8215 today on December 31st 2014. Sellers are not anticipated to gather enough downward momentum for a sustained breakdown. Buyers are favored to take the horizontal support level, enforced by its ascending support level, as a solid platform for a breakout and extended move to the upside.
The AUDUSD will face its first resistance level at its intra-day low of 0.8224 which was reached on December 9th 2014. This level has previously halted a move to the downside and pushed this currency back towards its horizontal resistance area. A breakout above this level will take the AUDUSD to its next resistance level at its intra-day high of 0.8376 which was reached on December 11th 2014. The move to the downside accelerated from this level. The final resistance level is located at its intra-day high of 0.8447 which was recorded on December 3rd 2014.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
Private Sector Credit for the month of November:
• Expectations: A monthly increase of 0.5% was expected in November, an annualized increase of 5.9%
• Previous Report’s Data: A monthly increase of 0.6% was reported in October, an annualized increase of 5.8%
• Released Data: A monthly increase of 0.5% was reported for November, an annualized increase of 5.9%
• Impact on the Australian Dollar: The annualized increase in private sector credit out of Australia has exercised upward pressure on the Australian Dollar ; this favors binary call options in the AUDUSD currency pair
In addition the following economic report out of the United States is expected to impact the quote currency, the US Dollar, of the AUDUSD currency pair:
Chicago Purchasing Manager Index for the month of December:
• Expectations: A monthly reading of 60.0 is expected in December
• Previous Report’s Data: A monthly reading of 60.8 was reported in November
• Impact on the US Dollar: The expected slowdown in the Chicago PMI is likely to pressure the US Dollar to the downside which favors binary call options in the AUDUSD currency pair