June 25th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/USD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.1190
• Downside Potential: The downside potential for this binary put option is 320 pips to 1.0870
• Upside Potential: The upside potential for this binary put option is 70 pips to 1.1260
The EUR/USD has retreated from its most recent intra-day high of 1.1437 which was reached on June 18th 2015. The advance emerged from its intra-day low of 1.0876 recorded on May 28th 2015 and this level marked a false breakout above its horizontal resistance level. In addition the most recent intra-day high represented a higher high as compared to its previous intra-day high of 1.1387 reached on June 10th 2015. The best site for options trading is now favoring binary put options in the EUR/USD currency pair as more downside is expected.
Price action is currently trading inside of its horizontal resistance level from where upside momentum is being deflated. The EUR/USD is expected to breakdown below its ascending support level and enter a corrective phase. Binary options traders can benefit from the anticipated move to the downside with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.1190 for a risk/reward ratio of 1.0/4.57.
The EUR/USD was exposed to a contraction in volatility which accompanied its move to the upside, but the false breakout above its horizontal resistance level resulted in an increase in volatility. Binary options traders need to be prepared for another increase in volatility as price action is trapped inside of a triangle formation which converges inside of its horizontal resistance level. Buyers may attempt to keep the uptrend intact with a breakout above its descending resistance level, but sellers are favored to possess enough downward momentum for a breakdown below its ascending support level and an accelerated move to the downside.
The first support level, after a successful breakdown below its ascending support level, awaits the EUR/USD at its intra-day low of 1.1135 recorded on June 23rd 2015. This level marks the low of its initial drift away from its most recent intra-day high which led to a false breakdown below its horizontal resistance level. The next support level is set at its intra-day low of 1.1049 which was reached on June 5th 2015 from where a breakdown will lead this currency pair down to its final support level located at its intra-day low of 1.0867 recorded on May 28th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EUR/USD currency pair:
German GfK Consumer Confidence Survey for the month of July:
• Expectations: A level of 10.2 is expected for the month of July
• Previous Report’s Data: A level of 10.2 was reported in the month of June
• Impact on the Euro: The expected lack of growth in German consumer confidence may suffice to apply downward pressure on the Euro which favors binary put options in the EUR/USD 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 EUR/USD currency pair:
Personal Income & Personal Spending for the month of May:
• Expectations: An increase of 0.5% in personal income is expected for the month of May, an increase of 0.7% in personal spending
• Previous Report’s Data: An increase of 0.4% in personal income was reported in the month of April, a level of 0.0% in personal spending
• Impact on the US Dollar: The anticipated increase in personal spending is likely to pressure the US Dollar to the upside; this favors binary put options in the EUR/USD currency pair