March 31st, 2015 5:12am 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 0.7650
• Upside Potential: The upside potential for this binary call option is 250 pips to 0.7900
• Downside Potential: The downside potential for this binary call option is 90 pips to 0.7560The AUDUSD entered a strong corrective phase after it reached its intra-day high of 0.7938 on March 24th 2015. This level represented a false breakout above its horizontal resistance level. A strong advance preceded this move which emerged from an intra-day low of 0.7560 recorded on March 11th 2015. This level marked a false breakdown below its horizontal support level. The price action reversal took the AUDUSD to an intra-day low of 0.7632 which was reached today on March 31st 2015. This resulted in a higher low and an ascending support level formed.
Price action is now trading inside of its horizontal support level which is being enforced by its newly formed ascending support level. The AUDUSD is anticipated to drift into its descending resistance level from where a breakout is favored. Binary options traders can profit from the expected breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.7650 for a risk/reward ratio of 1.0/2.78.
The AUDUSD was exposed to a drop in volatility which accompanied that sharp corrective phase covering a short time period, but an increase in volatility is expected as this currency pair is now trading inside of an enforced horizontal support level. During the strong move to the downside a steep descending resistance level has formed and sellers may attempt to extend the corrective phase with a breakdown below its ascending support level. The intra-day low of 0.7560 is not likely to be violated to the downside. Buyers are expected to take the enforced support level in order to breakout above its descending resistance level and accelerate its advance. This favors binary call options in the AUDUSD currency pair.
The first resistance level awaits the AUDUSD at its intra-day high of 0.7731 which was reached on March 12th 2015. This level represents the high recorded during the reversal off of the formation of its ascending support level. A breakout above this level will take the AUDUSD to its intra-day high of 0.7847 which was recorded on March 18th 2015 during a price spike. The final resistance level is located at its intra-day high of 0.7938 which was reached on March 24th 2015 from where a double top formation may emerge.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
HIA New Home Sales for the month of February:
• Expectations: An increase of 1.4% was expected for the month of February
• Previous Report’s Data: An increase of 1.8% was reported in the month of January
• Released Data: An increase of 1.1% was reported in the month of February
• Impact on the Australian Dollar: The lower than expected increase in HIA New Home Sales failed to pressure the Australian Dollar to the downside 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:
Chicago Purchasing Manager Index for the month of March:
• Expectations: A level of 51.8 is expected for the month of March
• Previous Report’s Data: A level of 45.8 was reported in the month of February
• Impact on the US Dollar: Given other regional reports which disappointed it is expected that the Chicago Purchasing Manager Index will follow suit; this favors binary call options in the AUDUSD currency pair