October 14th 2014 7:30am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EURCHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.2085
• Upside Potential: The upside potential for this binary call option is 50 pips to 1.2135
• Downside Potential: The downside potential for this binary call option is 35 pips to 1.2050
he EURCHF was unable to breakout above its horizontal resistance line and was reversed back down into a double support level; its ascending support line has intersected and merged with its horizontal support line. This is expected to be sufficient in order to push the EURCHF back into its horizontal resistance level in order to attempt a breakout. This currency pair did move higher from an intra-day low of 1.2053 which it reached on September 30th 2014 to an intra-day high of 1.2139 which it reached on October 7th 2014.
Price action is currently trading at its double support level from where buyers are expected to step in and push the EURCHF upwards during which momentum could accelerate and force a breakout in order to extend the move higher. Binary options traders can benefit from the anticipated move higher with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.2085 for a risk/reward ratio of 1.0/1.43.
Volatility has receded during the move lower which was essentially free of interruptions. Traders should expect this to change as price action is trading at a very important level. Sellers are expected to use the current downward momentum in order to force a breakdown below a solid support area. Any potential breakdown should be taken as a good entry opportunity into EURCHF binary call options as downside potential remains limited. Buyers are expected to use the current support area as a platform to end the slide and reverse price action higher.
The expected reversal will run into its first resistance level at the 1.2091 level which is an intra-day high reached on October 2nd 2014 from where the EURCHF struggled before breaking out and advancing to its most recent intra-day high of 1.2139. A successful breakout above this level will take the EURCHF to the 1.2116 level which is an intra-day high reached on October 10th 2014 and represent the last level which pressured this currency pair lower. The final resistance level is located at its intra-day high of 1.2139 from October 7th 2014.
The following economic data out of the Eurozone is expected to impact the the base currency, the Euro, of the EURCHF currency pair:
Eurozone Industrial Production for the month of August:
• Expectations: A monthly contraction of 1.6%, an annualized contraction of 0.9%
• Previous Report’s Data: A monthly increase of 1.0% was reported in July, an annualized increase of 2.2%
• Impact on the Euro: The expected contraction in industrial production is likely to place downward pressure on the Euro, but Swiss data is anticipated to over-shadow Eurozone data which favors binary call options in the EURCHF currency pair
In addition the following economic report out of Switzerland is expected to impact the quote currency, the Swiss Franc, of the EURCHF currency pair:
Producer & Import Prices for the month of September:
• Expectations: A monthly contraction of 0.3%, an annualized contraction of 1.5%
• Previous Report’s Data: A monthly contraction of 0.2% was reported in August, an annualized contraction of 1.2%
• Impact on the Swiss Franc: The increase in the contraction for producer & import prices in Switzerland is expected to pressure the Swiss Franc lower; this favors binary call options in the EURCHF currency pair