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By: Adam Stone
February 13th, 2015 5:25am 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 1.1430
• Upside Potential: The upside potential for this binary call option is 250 pips to 1.1680
• Downside Potential: The downside potential for this binary call option is 70 pips to 1.1360The EURUSD is trading in the middle of its bullish price channel as well as the top end of its horizontal support level. This currency pair added to its advance after a dismal report on advanced retail sales was reported in the US yesterday. The EURUSD has previously moved to the downside after reaching an intra-day high of 1.1679 on January 21st 2015. This move was reversed after an intra-day low of 1.1097 was recorded on January 26th 2015 and the bullish price channel has emerged which is expected to guide this currency pair further to the upside.


Price action is currently drifting higher inside of it bullish chart pattern with strong upward momentum likely to further fuel the advance. The EURUSD is expected to extend this move until it reaches its ascending resistance level from where a breakout is anticipated. Binary options traders can take advantage from the likely breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.1430 for a risk/reward ratio of 1.0/3.57.

The EURUSD was exposed to a trading environment with low volatility which accompanied the corrective phase. The formation of the bullish price channel has further foster a low volatility trading environment as price action generally traded between its ascending support level and its ascending resistance level. Sellers may pressure a breakdown when price action nears its ascending support level which is not expected to materialize. Buyers are likely to pressure the EURUSD further to the upside until this currency pair will reach its ascending resistance level from where a breakout is expected. This favors binary call options in the EURUSD.

The first resistance level awaits the EURUSD at its ascending resistance level around the 1.1575 mark. This level represents a very important resistance level and price action may be reversed and pushed back down to the top end of its horizontal support level. A breakout above its ascending resistance level will clear the way for the EURUSD to accelerate its advance until it reaches its final resistance level located at its intra-day high of 1.1679 which was recorded on January 21st 2015.

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 fourth-quarter of 2014:
• Expectations: An increase of 0.2% is expected for the fourth-quarter of 2014, an annualized increase of 0.8%
• Previous Report’s Data: An increase of 0.2% was reported for the third-quarter, an annualized increase of 0.8%
• Impact on the Euro: The anticipated annualized increase in Eurozone GDP may pressure the Euro further to the upside which 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:
Import Price Index for the month of January:
• Expectations: A monthly contraction of 3.2% is expected for January, an annualized contraction of 8.9%
• Previous Report’s Data: A monthly contraction of 2.5% was reported in December, an annualized contraction of 5.5%
• Impact on the US Dollar: The expected accelerated contraction in the import price index is likely apply downward pressure on the US Dollar; this favors binary call options in the EURUSD currency pair

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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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