April 13th, 2015 6:09am 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 1.0600
• Upside Potential: The upside potential for this binary call option is 400 pips to 1.1000
• Downside Potential: The downside potential for this binary call option is 135 pips to 1.0465The EURUSD is stabilizing inside of its horizontal support level after a strong corrective phase took this currency pair from its intra-day high of 1.1036 which was reached on April 6th 2015 to its intra-day low of 1.0520 recorded yesterday on April 13th 2015. The intra-day high represented a lower high as compared to its previous intra-day high of 1.1052 which was reached on March 26th 2015. A descending resistance level formed as a result. The EURUSD started to bounce off of its current intra-day low and is expected to move to the upside.
Price action is now trading inside of its horizontal support level from where further downward momentum is being depleted. The EURUSD is anticipated to breakout and accelerate to the upside until it will reach its horizontal resistance level. Binary options traders can benefit from the expected breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.0600 for a risk/reward ratio of 1.0/2.96.
Volatility decreased during the sharp corrective phase, but an increase in volatility is expected as the EURUSD is trading near multi-year lows. Buyers and sellers are set to square off inside of a very crucial support level. The current intra-day low represents a higher low as compared to its previous intra-day low of 1.0462 recorded on March 13th 2015 and an ascending support level formed. Sellers are likely to attempt a breakdown below this level in order to test the March 13th low. Buyers are favored to successfully breakout above its horizontal support level and accelerate back into its horizontal resistance level.
The EURUSD will face its first resistance level at its intra-day high of 1.0684 which was recorded on April 10th 2015.This level marked the high of a minor bounce higher prior to dropping to its current intra-day low. A breakout above this level will take the EURUSD to its next resistance level at its intra-day high of 1.0888 which was reached on April 8th 2015. The final resistance level is located at its descending resistance level around the 1.1000 mark which is located inside of its horizontal resistance level.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURUSD currency pair:
Eurozone Industrial Production for the month of February:
• Expectations: A monthly increase of 0.4% is expected for February, an annualized increase of 0.8%
• Previous Announcement: A monthly contraction of 0.1% was reported in January, an annualized increase of 1.2%
• Impact on the Euro: The expected monthly increase in industrial production out of the Eurozone may suffice to apply upward pressure on the Euro; 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 March:
• Expectations: An increase of 1.0% is expected in the month of March
• Previous Report’s Data: A contraction of 0.6% was reported in the month of February
• Impact on the US Dollar: The anticipated increase in advanced retail sales out of the US may not be strong enough to support a stronger US currency which favors binary call options in the EURUSD currency pair