March 11th, 2015 5:00am 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 0.7620
• Upside Potential: The upside potential for this binary call option is 290 pips to 0.7910
• Downside Potential: The downside potential for this binary call option is 120 pips to 0.7500The AUDUSD is currently stabilizing after a strong move to the downside took this currency pair to its most recent intra-day low of 0.7592 which was reached today on March 11th 2015. This level marks the bottom of its newly formed horizontal support level from where a decrease in downward momentum is expected. The corrective phase emerged after this currency pair recorded an intra-day high of 0.7913 on February 26th 2015. The AUDUSD is likely to trade around current levels until enough upward pressure has been accumulated.
Price action is now trading inside its horizontal support where downward pressure is fading quickly as this currency pair is stabilizing. The AUDUSD is expected to drift higher until it will reach its descending resistance level from where a breakout is favored. Binary options traders can benefit from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.7620 for a risk/reward ratio of 1.0/2.42.
Volatility decreased together with the corrective phase which took this currency pair into its newly formed horizontal support level, but an increase is expected as buyers and sellers are likely to test this level. Sellers may attempt to extend the corrective phase and apply downward pressure on the AUDUSD, but any potential move lower from current levels is expected to be limited to its intra-day low of 0.7592. Buyers are favored to drift higher and successfully breakout above its descending resistance level from where the AUDUSD can accelerate back into its horizontal resistance level.
The AUDUSD will face its first resistance level at its descending resistance level around the 0.7735 mark. This level represents a crucial resistance for this currency pair as a breakout above it will take the AUDUSD to its intra-day high of 0.7838 which was reached on March 4th 2015. This level represents the high from a previous advance before the descending resistance level pressured this currency pair to its most recent intra-day low. The final resistance level is located at its intra-day high of 0.7913 which was recorded on February 26th 2015.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
Australian Home Loans for the month of January:
• Expectations: A contraction of 2.0% was expected for the month of January
• Previous Announcement: An increase of 2.7% was reported in the month of December
• Released Data: A contraction of 3.5% was reported for the month January
• Impact on the Australian Dollar: The reported contraction in home loans is likely to be overshadowed by economic data out of the United States which 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:
MBA Mortgage Applications for the week of March 6th:
• Expectations: A weekly increase of 2.7%is expected for the week of March 6th
• Previous Report’s Data: A weekly increase of 0.1% was reported in the week of February 27th
• Impact on the US Dollar: The expected in MBA mortgage application is unlikely to apply upward pressure on the US Dollar; this favors binary call options in the AUDUSD currency pair