February 19th, 2015 5:40am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EURUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.1410
• Downside Potential: The downside potential for this binary put option is 310 pips to 1.1100
• Upside Potential: The upside potential for this binary put option is 125 pips to 1.1535The EURUSD is in the midst of a pullback away from its intra-day high of 1.1534 which was reached on February 3rd 2015. This level represented a false breakout above its horizontal resistance level and price action entered a corrective phase back inside of this level. The EURUSD may continue to trend sideways until it will reach the intersection of its ascending support level, which reversed a false breakdown, and its descending resistance level. A breakdown is expected to emerge once this currency pair reaches this intersection around the 1.1400 mark.
Price action is currently trading just above its horizontal resistance level, at its descending resistance level, from where it is expected to trend sideways until enough downward pressure has accumulated. The EURUSD is anticipated to breakdown and accelerate back into its horizontal support level. Binary options traders can benefit from the expected breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.1410 for a risk/reward ratio of 1.0/2.48.
Volatility has decreased during the advance from its intra-day low of 1.1097 which was reached on January 26th 2015 and has remained depressed during its move away from its most recent intra-day high. An increase in volatility is expected as price action is trapped inside a triangle formation. Buyers are likely to use the ascending support level in order to force a breakout which is not expected to materialize. Sellers are anticipated to take the descending resistance level which is intersecting its horizontal resistance level in order to complete a breakdown. This favors binary put options in the EURUSD currency pair.
The EURUSD will face its first support level, after a successful breakdown below its ascending support level, at its intra-day low of 1.1270 which was reached on February 9th 2015. This level marks the low reached during a previous minor corrective phase. A breakdown below this level will take the EURUSD to its next support level at its intra-day low of 1.1207 which was reached on January 23rd 2015. The final support level is located at its intra-day low of 1.1097 which was recorded on January 26th 2015 from where the previous advance originated.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURUSD currency pair:
Eurozone Consumer Confidence for the month of February:
• Expectations: A level of -7.5 is expected for the month of February
• Previous Report’s Data: A level of -8.5 was reported in the month of January
• Impact on the Euro: The anticipated improvement in Eurozone consumer confidence may not suffice to pressure the Euro to the upside; this favors binary put 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:
Philadelphia Federal Reserve Index for the month of February:
• Expectations: A reading of 9.0 is expected for the month of February
• Previous Report’s Data: A reading of 6.3 was reported for the month of January
• Impact on the US Dollar: The expected increase in the Philadelphia Federal Reserve Index is likely to apply upward pressure on the US Dollar which favors binary put options in the EURUSD currency pair