May 8th, 2015 5:10am GMT, London UK
Today’s Binary Options Trading Strategy:
• NFP REPORT SCHEDULED FOR RELEASE TODAY ! BIGGEST NEWS TRADING EVENT OF THE MONTH !
• Commodity: Gold
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1,185.00
• Upside Potential: The upside potential for this binary call option is 3,000 pips to 1,215.00
• Downside Potential: The downside potential for this binary call option is 1,530 pips to 1,169.70
Gold is currently stabilizing inside of its horizontal support level after retreating from its intra-day high of 1,199.89 which was reached on May 5th 2015. This level was recorded as a result of an advance away from its intra-day low of 1,169.68 reached on May 1st 2015 which was preceded by a corrective phase from its intra-day high of 1,215.01 recorded on April 28th 2015. A descending resistance level has emerged from this intra-day high as well, which halted the previous drift to the upside. The move lower recorded an intra-day low of 1,178.78 yesterday on May 7th 2015 from where an ascending support level formed.
Price action is currently trading inside of its horizontal support level from where downward pressure is fading away. Gold is anticipated to stabilize at this enforced support level and drift into its descending resistance level from where a breakout is favored. Binary options traders can take advantage of the expected breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1,185.00 for a risk/reward ratio of 1.0/1.96.
Gold faced a contraction in volatility which accompanied its corrective phase away from its intra-day high of 1,215.01, but the false breakdown below its horizontal support level, the following advance as well as the reversal have increased volatility. Gold is likely to face another increase in volatility as price action is trapped inside of a triangle formation. Sellers may try to push this commodity below its enforced support level, but its intra-day low of 11.69.68 is unlikely to be violated to the downside. Buyers are anticipated to pressure Gold into a breakout above its descending resistance level from where this commodity can accelerate to the upside. This favors binary call options in Gold.
The first resistance level, after a successfully breakout above the intersection between its ascending support level and its descending resistance level, awaits Gold at its intra-day high of 1,199.89 which was recorded on May 1st 2015. This level represents the high reached during a previous drift to the upside. A breakout above this level will take Gold to its intra-day high of 1,207.17 which was reached on April 27th 2015. This level marks the low end of its horizontal resistance level. The final resistance level is located at its intra-day high of 1,215.01 which was recorded on April 28th 2015.
The following economic data out of China already impacted Gold:
Trade Balance for the month of April:
• Expectations: A trade surplus of $39.60 billion was expected for the month of April
• Previous Report’s Data: A trade surplus of $3.08 billion was reported in the month of March
• Released Data: A trade surplus of $34.13 billion was reported in the month of April
• Impact on Gold: The reported trade surplus out of China failed to apply downward pressure on this commodity which favors binary call options Gold
In addition the following economic report out of the United States is expected to impact Gold:
Non-Farm Payrolls Report & Unemployment Rate for the month of April:
• Expectations: The addition of 230,000 jobs is expected for the month of April, an unemployment rate of 5.4%
• Previous Report’s Data: The addition of 126,000 jobs was reported in the month of March, an unemployment rate of 5.5%
• Impact on Gold: Expectations for today’s NFP may be overly optimistic and vulnerable for a negative surprise which is likely to pressure Gold to the upside; this favors binary call options in this commodity