June 24th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/CHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.0425
• Downside Potential: The downside potential for this binary put option is 145 pips to 1.0280
• Upside Potential: The upside potential for this binary put option is 70 pips to 1.0495
The EUR/CHF has been drifting to the downside after reaching its intra-day high of 1.0574 on June 4th 2015. The retreat was guided lower by a shallow bearish price channel which remains intact and has enclosed its horizontal resistance level. The descending resistance level emerged from its intra-day high of 1.0574 while the descending support level originated from its intra-day low of 1.0450 which was reached on June 3rd 2015. Binary options trading can be very profitable and trading online free of transaction costs increases profitability.
Price action is now trading just below of its horizontal resistance level at its ascending support level. The EUR/CHF is anticipated to breakdown below its bearish price channel and accelerate down to its horizontal support level. Binary options traders can take advantage from the expected breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.0425 for a risk/reward ratio of 1.0/2.07.
Volatility decreased as the EUR/CHF advanced from its intra-day low of 1.0279 reached on May 29th 2015, and was further depleted as the bearish price channel has allowed for a calm drift to the downside. An increase in volatility occurred as the ascending support level intersected both its bearish price channel as well as its horizontal resistance level. Binary option traders should account for more volatility as buyers are anticipated to force a breakout above its horizontal resistance level; a move which is unlikely to materialize above its descending resistance level. Sellers are favored to push the EUR/CHF further to the downside.
The EUR/CHF will face its first support level at its intra-day low of 1.0405 which was recorded on June 19th 2015. This level represents the intersection between its ascending support level and its descending support level of its bearish price channel. A breakdown below this level will take the EUR/CHF to its descending support level around the 1.0375 mark. The next support level awaits this currency pair at its intra-day low of 1.0316 reached on May 27th 2015 from where another breakdown will clear the path to its final support level which is located at its intra-day low of 1.0279 recorded on May 29th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EUR/CHF currency pair:
German IFO Expectations Index for the month of June:
• Expectations: A level of 102.4 is expected for the month of June
• Previous Report’s Data: A level of 103.0 was reported in the month of May
• Impact on the Euro: The anticipated slowdown in the German IFO Expectations Index is likely to pressure the Euro to the downside; this favors binary put options in the EUR/CHF currency pair
In addition the following economic report out of Switzerland is expected to impact the quote currency, the Swiss Franc, of the EUR/CHF currency pair:
UBS Consumption Indicator for the month of May:
• Expectations: A level of 1.21 is expected for the month of May
• Previous Report’s Data: A level of 1.25 was reported in the month of April
• Impact on the Swiss Franc: The expected reading out of the UBS Consumption Indicator may suffice to apply upward pressure on the Swiss Franc which favors binary put options in the EUR/CHF currency pair