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BINARY OPTIONS INSIGHTS FOR AUGUST 3RD 2015

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By: Adam Stone
August 3rd, 2015 5:22am GMT, London UK

Market Recap & Outlook:

During the previous trading session, Canada reported an unexpected contraction in its Gross Domestic Product (GDP) for the month of May. Economists were looking for no change month-over-month and for an increase of 0.8% year-over-year. This would have followed the contraction of 0.1% and increase of 1.2% reported in April respectively. The released report showed a surprise contraction of 0.2% month-over-month and an increase of only 0.5% year-over-year. This confirms that the collapse in the commodity market had a bigger-than-expected impact on the Canadian economy.

The Employment Cost Index in the United States rose 0.2% in the second-quarter of 2015. This marked the slowest increase since 1982, the year since this report exists. Wages & Salaries dropped to 0.2%, down 0.5% from the first-quarter’s level of 0.7%. With the contraction in the Employment Cost Index, the threat of wage inflation has been literally made non-existent. The US Federal Reserve is watching this indicator for a sign when to raise interest rates which is likely to be delayed further into the future and until wage pressure increase.

The trading week started with a report out of Australia during the Asian trading session which showed the AiG Performance of Manufacturing Index surged to 50.4 in July. Economists expected a level of 45.8 after this index came in at 44.2 in June. A level above 50.0 represents an expansion in the sector and this morning’s data showed a healthy rebound in the manufacturing sector which provided a boost to the Australian Dollar. Learning option trading is a very important step to take on the road to consistent profitability.

Today’s Binary Option Trading Recommendations Overview:

AUD/USD – Binary Put Option
EUR/GBP – Binary Call Option
USD/CHF – Binary Put Option
Silver – Binary Put Option
FTSE 100 – Binary Put Option

Currency Pairs on today’s Radar Screen:

AUD/USD – The AUD/USD has spiked to the upside after reaching its intra-day low of 0.7234 on July 31st 2015. The 50 Day Moving Average (DMA) continues to trade below the 200 DMA which provides an elevated amount of downward pressure in this currency pair. The Accelerator Oscillator (AC) has confirmed the price spike with one of its own, but has collapsed after reaching its peak. The Relative Strength Index (RSI) has broken down from overbought territory and is trading in neutral conditions.

 
AUD/USD
Today’s Binary Options Trading Strategy: Put Option
Price action is now trading below of its 200 DMA, but above of its horizontal 50 DMA. The AUD/USD is anticipated to reverse its price spike and drift back down into its horizontal support level. Binary option traders are advised to seek binary put options in the AUD/USD currency pair on rallies above 0.7310 on the H1 Hourly Chart. The downside potential for this binary put option is 75 pips to 0.7235 while the upside potential is 40 pips to 0.7350. This results in a risk/reward ratio of 1.88.

EUR/GBP – The EUR/GBP is trying to stabilize near its ascending support level after reversing its previous bounce to the upside. The 50 DMA is trending sideways and below the 200 DMA which enjoys an upward bias. The AC has reversed together with price action and the RSI has broken down from extreme overbought territory. Learning option trading can result in a solid revenue stream for binary options traders.
EUR/GBP Trading
Today’s Binary Options Trading Strategy: Call Option
Price action is currently trading at its ascending support level. The EUR/GBP is expected to accelerate to the upside in order to challenge its horizontal resistance level. Binary option traders are advised to seek binary call options in the EUR/GBP currency pair on dips below 0.7030 on the H1 Hourly Chart. The upside potential for this binary call option is 130 pips to 0.7160 while the downside potential is 45 pips to 0.6985. This results in a risk/reward ratio of 2.89.

USD/CHF – The USD/CHF has caught a drift to the upside after dropping to its intra-day low of 0.9548 which was recorded on July 31st 2015. The 50 DMA remains above the 200 DMA, but hast started to descend. The AC points towards a potential reversal in upward momentum as the RSI has recovered from extreme oversold territory and is now trading in neutral conditions, but remains under an elevated amount of downward pressure.
USD/CHF Chart
Today’s Binary Options Trading Strategy: Put Option
Price action is now trading below of its horizontal resistance level from where a change in momentum has emerged. The USD/CHF is anticipated to drift down to its 200 DMA from where a breakdown is favored. Binary option traders are advised to seek binary put options in the USD/CHF currency pair on rallies above 0.9650 on the H1 Hourly Chart. The downside potential for this binary put option is 120 pips to 0.9530 while the upside potential is 65 pips to 0.9715. This results in a risk/reward ratio of 1.85.

Today’s Commodity Trade

Silver – Silver has accumulated enough upward momentum after briefly touching its horizontal support level which took this commodity to its horizontal resistance level. The 50 DMA and the 200 DMA are trading in close proximity to each other which could result in a series of false crosses. The AC has reversed from its peak while the RSI is trading in neutral territory after collapsing from extreme overbought conditions.
Silver Binary Options
Today’s Binary Options Trading Strategy: Put Option
Price action is currently trading below of its descending resistance level after breaking down from a previous price spike. Silver is expected to breakdown below its 200 DMA and drop into its horizontal support level. Binary option traders are advised to seek binary put options in Silver on rallies above 14.750 on the H1 Hourly Chart. The downside potential for this binary put option is 30 pips to 14.450 while the upside potential is 15 pips to 14.900. This results in a risk/reward ratio of 2.00.

Today’s Equity Index Recommendation

FTSE 100 – The FTSE 100 has advanced into its 200 DMA which is located just beneath its horizontal resistance level. The 50 DMA is accelerating to the upside and closing the gap to the 200 DMA which started to enter a sideways drift. The AC confirms a deflation of upward momentum and supports a price action reversal while the RSI has formed a negative divergence and completed a breakdown from extreme overbought territory.
FTSE 100 Index
Today’s Binary Options Trading Strategy: Put Option
Price action is now trading below of its 200 DMA, but above its 50 DMA. The FTSE 100 is anticipated to enter a corrective phase from current levels. Binary option traders are advised to seek binary put options in the FTSE 100 equity index on rallies above 6,680.00 on the H1 Hourly Chart. The downside potential for this binary put option is 18,750 pips to 6,492.50 while the upside potential is 5,500 pips to 6,735.00. This results in a risk/reward ratio of 3.41.

Key Fundamental Data:

Australia – The AiG Performance of Manufacturing Index rose to 50.4 in July and points towards an expansion in the Australian manufacturing sector. This follows the contractionary reading of 44.2 which was reported in June.
Australia – HIA New Home Sales posted an increase of 0.5% in June month-over-month which represents a turnaround from the contraction of 2.3% reported in May.
China – The final reading for Caixin Manufacturing PMI showed a downward revision from the initially reported level of 48.2 to 47.8. Economists were looking for an upward revision to 48.3.
Switzerland – Expectations for the SVME-Purchasing Managers Index for July call for an increase to 50.5 in July after coming in at 50.0 in June.
Eurozone – The final reading for the Eurozone Manufacturing PMI for July is expected to confirm the previously reported level of 52.2.
United Kingdom – Economists expect a slight improvement in the UK manufacturing sector for July. The Markit Manufacturing PMI is set to rise to 51.5 in July from June’s 51.4.
United States – Personal income is expected to increase by 0.3% in June while personal spending is expected to increase by 0.2%. This would represent sharp slowdown from May’s increase of 0.5% and 0.9% respectively. Real personal spending is set to come in flat in June after increasing by 0.6% in May. Revisions to previous reports are also going to impact today’s data. The Personal Consumption Expenditure Deflator is set to rise by 0.2% in June month-over-month and 0.2% year-over-year. This would follow May’s increase of 0.3% and 0.2% respectively. The core Personal Consumption Expenditure Deflator is expected to increase by 0.2% month-over-month any by 1.2% year-over-year after posting an increase of 0.1% and 1.2% in May.
United States – Economist expected the final review for the July Markit Manufacturing PMI to match the 53.8 which was initially reported.
United States – Expectations call for a slowdown in construction spending in June to 0.6% month-over-month after rising by 0.8% in May.
United States – The ISM Manufacturing Index for July is expected to clock in at 53.5 for July which would match the 53.5 reported in June. Prices Paid, an indicator for inflationary pressures in the pipeline, is expected to decrease in July to 49.3 from June’s level of 49.5 which would make inflation a non-factor with prices decreasing.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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