April 22nd, 2015 6:55am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: AUDUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.7750
• Downside Potential: The downside potential for this binary put option is 215 pips to 0.7535
• Upside Potential: The upside potential for this binary put option is 65 pips to 0.7815The AUDUSD is retreating from its most recent intra-day high of 0.7842 which was reached on April 17th 2015. This level represents a lower high as compared to its previous intra-day high of 0.7904 recorded on March 25th 2015, as well as the bottom of its horizontal resistance level. In addition a descending resistance level formed which pushed the AUDUSD to the downside. Preceding this move was an advance from its intra-day low of 0.7553 which was reached on April 13th 2015. This level marked a higher low as compared to its previous intra-day low of 0.7533 recorded on April 2nd 2015.
Price action is currently trading above its ascending support level, but below its descending resistance level. The AUDUSD is anticipated to breakdown below its ascending support level and accelerate to the downside. Binary options traders can benefit from the expected breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 0.7750 for a risk/reward ratio of 1.0/3.31.
The AUDUSD was exposed to a contraction in volatility during its most recent advance, and volatility further decreased during the pullback away from its current intra-day high. An increase in volatility is expected as price action is trapped inside of a triangle formation. Buyers may attempt to force a breakout above its descending resistance level which is unlikely to materialize past its horizontal resistance level. Sellers are favored to breakdown below its ascending support level and accelerate back down into its horizontal support level.
The first support level awaits the AUDUSD at its intra-day low of 0.7683 which was recorded yesterday on April 21st 2015. This level represents the last time the ascending support level halted a move to the downside. A breakdown below this level will take the AUDUSD to its intra-day low of 0.7568 which was reached on April 2nd 2015. This level represents the top of its horizontal support level. The final support level is located at its intra-day low of 0.7533 which was also recorded on April 2nd 2015 from where a double bottom formation may emerge.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
Consumer Prices Index for the first-quarter of 2015:
• Expectations: A quarterly increase of 0.1% was expected for the first-quarter of 2015, an annualized increase of 1.3%
• Previous Report’s Data: A quarterly increase of 0.2% was reported in the fourth-quarter of 2014, an annualized increase of 1.7%
• Released Data: A quarterly increase of 0.2% was reported in the first-quarter of 2015, an annualized increase of 1.3%
• Impact on the Australian Dollar: The slowdown in annualized consumer prices inflation has applied downward pressure on the Australian Dollar which favors binary put options in the AUDUSD currency pair
In addition the following economic report out the United States is expected to impact the quote currency, the US Dollar, of the AUDUSD currency pair:
Existing Home Sales for the month of March:
• Expectations: An increase of 3.1% is expected for the month of March
• Previous Report’s Data: An increase of 1.2% was reported in the month of February
• Impact on the US Dollar: The expected increase in existing home sales out of the United States is likely to pressure the US Dollar to the upside; this favors binary put options in the AUDUSD currency pair