March 17th, 2015 5:01am 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 0.7640
• Upside Potential: The upside potential for this binary call option is 220 pips to 0.7860
• Downside Potential: The downside potential for this binary call option is 80 pips to 0.7560The AUDUSD enjoyed a healthy move to the downside after recording its intra-day high of 0.7913 on February 26th 2015. This level is located just above its horizontal resistance level and after a quick reversal and breakdown below it this currency pair drifted to the upside, but reached a lower high with an intra-day high of 0.7860 on March 4th 2015. A descending resistance level formed and the AUDUSD accelerated to the downside until it recorded an intra-day low of 0.7560 on March 11th 2015. This marked a false breakdown below its horizontal support level and the AUDUSD bounced back inside of it.
Price action is now trading inside of its horizontal support level and is guided higher by its ascending support level. The AUDUSD is expected to resume its move to the upside until it will breakout above its descending resistance level which will extend the move into its horizontal resistance 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 0.7640 for a risk/reward ratio of 1.0/2.75.
The AUDUSD was exposed to a trading environment with decreased volatility which accompanied the move to the downside, but an increase in volatility is expected as this currency pair is now trading inside of a triangle formation. The ascending support level is increasing upward pressure while the descending resistance level is increasing downward pressure on the AUDUSD. Sellers may attempt a breakdown in order to keep the downtrend intact while buyers are likely to use the strength of its horizontal support level together with the ascending support level to successfully breakout and advance. This favors binary call options in the AUDUSD currency pair.
The first resistance level awaits the AUDUSD at the intersection between its ascending support level and its descending resistance level around the 0.7690 mark. A breakout above this level will accelerate the AUDUSD to its intra-day low of 0.7739 which was reached on February 24th 2015. This level represents the low reached before the AUDUSD spiked to its intra-day high from where the reversal originates. The final resistance level is located at its intra-day high of 0.7860 which was reached on March 4th 2015 from where a double top formation may develop.
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 March 15th 2015:
• Expectations: A level of 110.5 was expected for the week of March 15th 2015
• Previous Report’s Data: A level of 110.3 was reported in the week of March 8th 2015
• Released Data: A level of 110.8 was reported for the week of March 15th 2015
• Impact on the Australian Dollar: The reported increase in consumer confidence sufficed to lift 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:
Housing Starts and Building Permits for the month of February:
• Expectations: A contraction of 1.6% in housing starts is expected for the month of February, an increase of 0.5% in building permits
• Previous Report’s Data: A contraction of 2.0% in housing starts was reported for the month of January, a level of 0.0% in building permits
• Impact on the US Dollar: The anticipated contraction in housing starts is likely to pressure the US Dollar to the downside which favors binary call options in the AUDUSD currency pair