April 29th, 2015 5:13am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: NZDUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.7700
• Downside Potential: The downside potential for this binary put option is 310 pips to 0.7390
• Upside Potential: The upside potential for this binary put option is 100 pips to 0.7800
The NZDUSD is enjoying a strong move to the upside, guided higher by its bullish price channel. The ascending support level originated from its intra-day low of 0.7391 which was recorded on April 1st 2015 while the ascending resistance level originated from its intra-day high of 0.7630 which was reached on April 3rd 2015. The current advance emerged from its intra-day low of 0.7536 which was recorded on April 23rd 2015 from where the ascending support level reversed a corrective phase. The NZDUSD is likely to be exposed to another price action reversal inside of its bullish price channel.
Price action is currently trading inside of its horizontal resistance level which has previously forced a reversal in this currency pair. The NZDUSD is anticipated to move down to its ascending support level from where a breakdown is favored. Binary options traders can take advantage from the expected move to the downside with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 0.7700 for a risk/reward ratio of 1.0/3.10.
Volatility remained contained during the two corrective moves as well as three advances as the bullish price channel allowed for an orderly trading environment. Volatility is expected to increase as a horizontal resistance level developed from where a double top formation is possible to exercise downward pressure on this currency pair. Buyers are expected to push this NZDUSD to the upside, but any advance is likely to be limited to its ascending resistance level. Sellers are anticipated to take advantage of the increase in downward pressure and force a price action reversal. This favors binary put options in the NZDUSD currency pair.
The NZDUSD will face its first support level at its intra-day high of 0.7630 which was recorded on April 3rd 2015 from where its ascending resistance level emerged. A breakdown below this level will take the NZDUSD to its intra-day low of 0.7536 which was reached on April 23rd 2015. This level marks the last time the ascending support level reversed a move to the downside. The final support level is located at its intra-day low of 0.7391 which was recorded on April 1st 2015 from where the ascending support level originates.
The following economic data out New Zealand already impacted the base currency, the New Zealand Dollar, of the NZDUSD currency pair:
Trade Balance for the month of March:
• Expectations: A monthly trade surplus of NZ$300 million was expected for March
• Previous Report’s Data: A monthly trade surplus of NZ$83 million was reported in February
• Released Data: A monthly trade surplus of NZ$631 million was reported in March
• Impact on the New Zealand Dollar: The reported increase in the New Zealand trade surplus failed to lift the New Zealand Dollar; this favors binary put options in the NZDUSD currency pair
In addition the following economic report out the United States is expected to impact the quote currency, the US Dollar, of the NZDUSD currency pair:
Gross Domestic Product for the first-quarter of 2015:
• Expectations: A quarterly increase of 0.5% is expected for the first-quarter of 2015, an annualized increase of 1.0%
• Previous Report’s Data: A quarterly increase of 0.1% was reported in the fourth-quarter of 2014, an annualized increase of 2.2%
• Impact on the US Dollar: The expected quarterly increase in the US GDP is likely to apply upward pressure on the US Dollar which favors binary put options in the NZDUSD currency pair