November 14th 2014 4:13am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EURUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.2460
• Upside Potential: The upside potential for this binary call option is 380 pips to 1.2840
• Downside Potential: The downside potential for this binary call option is 100 pips to 1.2360
The EURUSD has been able to stabilize after a reversal took this currency pair from its intra-day high of 1.2840 which was reached on October 21st 2014 to an intra-day low of 1.2357 which was reached on November 7th 2014. The reversal was caused by optimism out of the US economy while fundamental data out of the Eurozone has applied downward pressure on the Euro. After the most recent intra-day low the EURUSD managed to drift higher and create a series of higher lows which allowed for the creation of an ascending support level expected to further lift this currency pair.
Price action continues to enjoy the upward pressure provided by the ascending support level and the EURUSD is expected to resume its move to the upside until it approaches its descending resistance level from where a breakout may emerge. Binary options traders can profit from the anticipated move to the upside as well as breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.2460 for a risk/reward ratio of 1.0/3.80.
Volatility is expected to remain contained during the drift higher, but traders should expect a sharp increase once price action will approach its descending resistance level. Sellers are expected to attempt and halt the move to the upside while buyers will try to force a breakout above its descending resistance level in order to extend the move higher and challenge its most recent intra-day high. Upward momentum is expected to be strong enough to force a breakout which favors binary call options in the EURUSD currency pair.
The EURUSD will face its first resistance level at its intra-day high of 1.2533 which was reached on November 6th 2014 from where the move higher can be extended to its next intra-day high of 1.2577 which was reached on November 4th 2014. The next resistance level is posed by its descending resistance level near the 1.2600 level from where a breakout will take the EURUSD to its intra-day high of 1.2771 which was reached on October 29th 2014. The final resistance level is located at its intra-day high of 1.2840 which was reached on October 21st 2014 from where a double top formation may form.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURUSD currency pair:
Eurozone Gross Domestic Product for the third-quarter of 2014:
• Expectations: A quarterly increase of 0.1%, an annualized increase of 0.7%
• Previous Report’s Data: A quarterly increase of 0.1% was reported in the second-quarter, an annualized increase of 0.9%
• Impact on the Euro: The anticipated annualized slowdown in the Eurozone GDP is expected to be overshadowed by US economic data which is likely to disappoint; this favors binary call options in the EURUSD 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 EURUSD currency pair:
Advanced Retail Sales for the month of October:
• Expectations: A monthly increase of 0.2% is expected for the month of October
• Previous Report’s Data: A monthly contraction of 0.3% was reported for the month of September
• Impact on the US Dollar: The last few reports on consumer spending have disappointed and today’s report is likely to follow suit which favors binary call options in the EURUSD currency pair