March 18th, 2015 7:38am 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 1.0630
• Upside Potential: The upside potential for this binary call option is 750 pips to 1.1380
• Downside Potential: The downside potential for this binary call option is 165 pips to 1.0465The EURUSD has stabilized inside of its horizontal support level after the latest phase of its corrective move took this currency pair down to an intra-day low of 1.0462 which was recorded on March 13th 2015. This currency pair accelerated to the downside after reaching an intra-day high of 1.1450 on February 19th 2015. This formed the top of its horizontal resistance level from where a sideways trend resulted in a lower high with an intra-day high of 1.1380 which was reached on February 26th 2015. The EURUSD moved sharply to the downside from this level.
Price action is currently trading inside of its horizontal support level and is approaching the intersection of its ascending support level and its descending resistance level. The EURUSD is expected resume its uptrend away from its most recent intra-day low. Binary options traders can take advantage from the anticipated move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.0630 for a risk/reward ratio of 1.0/4.55.
Volatility decreased as this currency pair moved to the downside and was further depleted as a sideways trend inside of its horizontal support level emerged. As the EURUSD is approaching the intersection between its ascending support level and its descending resistance level, a spike in volatility is likely to accompany price action. Sellers are expected to prevent a breakout from unfolding and pressure this currency pair back down to its intra-day low. Buyers are anticipated to push the EURUSD above this intersection which would clear the path for an accelerated advance. This favors binary call options in the EURUSD currency pair.
The EURUSD will face its first resistance level, after a successful breakout above the intersection, at its intra-day low of 1.0823 which was reached on March 9th 2015. A breakout above this level will take the EURUSD to its intra-day high of 1.1114 which was reached on March 5th 2015 from where a further advance will take this currency pair to its intra-day high of 1.1241 recorded on March 2nd 2015. The final resistance level is located at its intra-day high of 1.1380 which was reached on February 26th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURUSD currency pair:
Eurozone Trade Balance for the month of January:
• Expectations: A monthly trade surplus of €15.0 billion is expected for January
• Previous Report’s Data: A monthly trade surplus of €24.3 billion was reported in December
• Impact on the Euro: The anticipated Eurozone trade surplus is likely to apply upward pressure on the Euro 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:
US Federal Reserve Federal Open Market Committee Interest Rate Decision:
• Expectations: No change in interest rates is expected with the key interest rate remaining at 0.25%
• Previous Report’s Data: No change in the interest rate was reported and the key interest rate remained at 0.25%
• Impact on the US Dollar: The statement which will accompany the FOMC announcement may disappoint and therefore pressure the US Dollar to the downside; this favors binary call options in the EURUSD currency pair