June 22nd, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:• Currency Pair: NZD/USD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 0.6900
• Upside Potential: The upside potential for this binary call option is 420 pips to 0.7320
• Downside Potential: The downside potential for this binary call option is 100 pips to 0.6800
The NZD/USD has started to stabilize inside of its newly formed horizontal support level after a strong corrective phase took this currency pair from its intra-day high of 0.7322 reached on May 26th 2015 to its intra-day low of 0.6879 which was recorded on June 17th 2015. The corrective phase was support by its bearish price channel and the NZD/USD is now trading just below its descending support level. The bearish price channel has also intersected its horizontal support level and option trading systems are pointing towards a reversal in this currency pair.
Price action is currently trading inside of its horizontal support level, but below its bearish price channel. The NZD/USD is expected to break into its bearish chart pattern and drift to its descending resistance level from where a breakout is favored. Binary options traders can take advantage from the anticipated advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.6900 for a risk/reward ratio of 1.0/4.20.
The NZD/USD was faced with a decrease in volatility during its corrective phase inside of its bearish price channel, but an increase in volatility is expected as buyers and sellers are set to test the validity of its newly formed horizontal support level. Sellers are expected to exercise an increase in downward pressure in order to force a breakdown and extend the move to the downside. Buyers are favored to first push the NZD/USD back inside of its bearish price channel from where a breakout is anticipated. This will allow a full price action reversal.
The first resistance level for the NZD/USD is set at its intra-day high of 0.7012 which was recorded on June 17th 2015. This level represents the high of a spike off of its most recent intra-day low. A breakout above this level will take the NZD/USD to its descending resistance level of its bearish price channel around the 0.7085 mark. The next resistance level awaits this currency pair at its intra-day high of 0.7232 reached on June 10th 2015 from where a breakout will take the NZDUSD to its final resistance level at its intra-day high of 0.7322 which was recorded on May 26th 2015.
The following economic data out of New Zealand is expected to impact the base currency, the New Zealand Dollar, of the NZD/USD currency pair:
Credit Card Spending for the month of May:
• Expectations: A monthly contraction of 0.2% is expected for May, an annualized increase of 7.5%
• Previous Report’s Data: A monthly contraction of 0.6% was reported in April, an annualized increase of 7.1%
• Impact on the New Zealand Dollar: The anticipated increase in annualized credit card spending is likely to apply upward pressure on the New Zealand Dollar which favors binary call options in the NZD/USD 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 NZD/USD currency pair:
Chicago Federal Reserve National Activity Index for the month of May:
• Expectations: A level of -0.16 is expected for the month of May
• Previous Report’s Data: A level of -0.15 was reported in the month of April
• Impact on the US Dollar: The expected reading out of the Chicago Federal Reserve National Activity Index is likely to pressure the US Dollar to the downside; this favors binary call options in the NZD/USD currency pair