March 25th, 2015 5:34am 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 1.0940
• Upside Potential: The upside potential for this binary call option is 440 pips to 1.1380
• Downside Potential: The downside potential for this binary call option is 255 pips to 1.0685The EURUSD is being guided higher by the formation of a bullish price channel after a strong corrective phase took this currency pair from its intra-day high of 1.1387 which was recorded on February 25th 2015 to its most recent intra-day low of 1.0462 which was reached on March 13th 2015. This level represents the origin of the ascending support level of its bullish price channel while the ascending resistance level originates from its intra-day high of 1.0684 which was recorded on March 12th 2015.
Price action is now trading just above its horizontal support level which is being intersected by its descending resistance level. The EURUSD is anticipated to resume its advance inside of it bullish price channel. Binary options traders can profit from the expected continuation of the uptrend with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.0940 for a risk/reward ratio of 1.0/1.96.
The EURUSD was exposed to a trading environment which featured a sharp contraction in volatility. The recent advance further contracted volatility as the bullish price channel allowed for an orderly advance, but volatility is expected to increase as the EURUSD is trading at a crucial support/resistance level. Sellers may attempt to reverse the recent gains with the assistance of the descending resistance level which has intersected the bullish price channel as well as the horizontal support level. Buyers are favored to take advantage of the upward momentum and resume its advance until this currency pair will reach its horizontal resistance level.
The first resistance level, after a successful breakout above its descending resistance level, awaits the EURUSD at its intra-day high of 1.1029 which was recorded on March 24th 2015. This level marks the high reached during its current move to the upside. A breakout above this level will take the EURUSD to its intra-day high of 1.1264 which was reached on February 26th 2015. This level marks the low end of its horizontal resistance level. The EURUSD will face its final resistance level at its intra-day high of 1.1387 which was reached on February 25th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURUSD currency pair:
German IFO Report for the month of March:
• Expectations: A level of 107.3 is expected for the IFO Business Climate Index in March, a level of 112.0 for the Current Assessment Index and a level of 103.0 for the IFO Expectations Index
• Previous Report’s Data: A level of 106.8 was reported for the IFO Business Climate Index in February, a level of 111.3 for the Current Assessment Index and a level of 102.5 for the IFO Expectations Index
• Impact on the Euro: The expected increase in today’s German IFO report is likely to pressure the Euro to the upside; 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:
Durable Goods Orders for the month of February:
• Expectations: An increase of 0.2% is expected for the month of February
• Previous Report’s Data: An increase of 2.8% was reported in the month of January
• Impact on the US Dollar: The anticipated slowdown in durable goods orders is likely to apply downward pressure on the US Dollar which favors binary call options in the EURUSD currency pair