February 24th, 2015 6:18am 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 0.7780
• Upside Potential: The upside potential for this binary call option is 240 pips to 0.8020
• Downside Potential: The downside potential for this binary call option is 135 pips to 0.7645The AUDUSD has started to advance from its most recent intra-day low of 0.7626 which was reached on February 3rd 2015. This intra-day low marked a false breakdown below its horizontal support level and price action accelerated into a false breakout before reversing again. This reversal resulted in a second false breakdown, but it created a higher low with an intra-day low of 0.7643 which was reached on February 12th 2015. An advance emerged and a bullish price channel was formed which guided this currency pair back inside of its horizontal support level.
Price action is now trading back inside of its horizontal support level from where downward momentum is fading away. The AUDUSD is expected to remain inside this level until enough upward momentum is present for a breakout. Binary options traders can profit from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.7780 for a risk/reward ratio of 1.0/1.78.
Volatility has been contained during the drift to the upside as the AUDUSD was guided higher by its bullish price channel. As price action is escorted to the upper end of its horizontal support level an increase in volatility is anticipated as buyers and sellers are set to face off. Sellers are likely to attempt a price action reversal which is not likely to materialize below its horizontal support level. Buyers are favored to take the accumulated upward momentum and its bullish price channel, a false breakdown may occur, for a sustained breakout and accelerated advance back to its horizontal resistance level.
The AUDUSD will face its first resistance level, after a successful breakout above its horizontal support level, at the ascending resistance level of its bullish price channel located around the 0.7930 mark. This resistance level is the only one which stands in the way of an advance back inside of its horizontal resistance level where an intra-day high of 0.8025, which was recorded on January 28th 2015, is likely to challenge any further advance. In addition a double top formation would emerge at this level further limiting upward potential.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
ANZ Roy Morgan Weekly Consumer Confidence Index for the week of February 22nd 2015:
• Expectations: A level of 108.7 was expected for the week which ended February 22nd 2015
• Previous Report’s Data: A level of 109.8 was reported for the week which ended February 15th 2015
• Released Data: A level of 110.8 was reported for the week which ended February 22nd 2015
• Impact on the Australian Dollar: The reported increase in consumer confidence should suffice to apply 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:
Consumer Confidence for the month of February:
• Expectations: A level of 99.5 is expected for the month of February
• Previous Report’s Data: A level of 102.9 was reported for the month of January
• Impact on the US Dollar: The expected slowdown is likely to pressure the US Dollar to the downside which favors binary call options in the AUDUSD currency pair