April 16th, 2015 6:29am GMT, London UK
Today’s Binary Options Trading Strategy:
• Commodity: Gold
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1,202.00
• Upside Potential: The downside potential for this binary put option is 5,480 pips to 1,147.20
• Downside Potential: The upside potential for this binary put option is 2,215 pips to 1,224.15Gold has remained resilient around its horizontal resistance level over the past month, but a corrective phase is likely on the horizon. This commodity is currently bouncing to the upside from its ascending support level after moving to the downside from its intra-day high of 1,210.67 which was reached on April 10th 2015. This level represents a lower high as compared to its previous intra-day high of 1,224.18 which was recorded on April 6th 2015. A descending resistance level formed as a result and is now enforcing its horizontal resistance level.
Price action is currently trading inside of its horizontal resistance level from where upward momentum is being deflated. Gold is expected to drift to the downside until enough downward pressure is present for a breakdown below its ascending support level. Binary options traders can take advantage from the anticipated breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1,202.00 for a risk/reward ratio of 1.0/2.47.
Gold has been exposed to a trading environment which featured a sharp contraction in volatility, but an increase in volatility is anticipated as this commodity is trading inside of its horizontal resistance level. In addition the ascending support level has intersected the descending resistance level just below the horizontal resistance level. Buyers may attempt to push Gold to the upside in order to challenge its most recent intra-day high which is not expected to be violated. Sellers are likely to amass enough downward pressure to force a breakdown below its ascending support level. This favors binary put options in Gold.
The first support level awaits Gold at the intersection between its ascending support level and its descending resistance level around the 1,197.00 mark. A breakdown below this important support level will accelerate Gold down to its intra-day low of 1,178.38 which was recorded on March 31st 2015. This level represents the low reached during a previous move to the downside. The final support level is located at its intra-day low of 1,147.14 which was recorded on March 18th 2015.
The following economic data out Australia already impacted Gold:
Employment Report for the month of March:
• Expectations: The addition of 15,000 jobs was expected in the month of March, an unemployment rate of 6.3%
• Previous Report’s Data: The addition of 42,000 jobs was reported in the month of February, an unemployment rate of 6.2%
• Released Data: The addition of 37,700 jobs was reported in the month of March, an unemployment rate of 6.1%
• Impact on Gold: The employment report out of Australia has applied downward pressure in Gold which favors binary put options in this commodity
In addition the following economic report out of the United States is expected to impact Gold:
Housing Starts and Building Permits for the month of March:
• Expectations: An increase of 15.9% in housing starts is expected for the month of March, a contraction of 1.5% in building permits
• Previous Report’s Data: A contraction of 17.0% in housing starts was reported in the month of February, an increase of 4.0% in building permits
• Impact on Gold: The expected increase in housing starts out of the US is likely to pressure this commodity to the downside; this favors binary put options in Gold