June 17th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: USD/CHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 0.9320
• Upside Potential: The upside potential for this binary call option is 220 pips to 0.9540
• Downside Potential: The downside potential for this binary call option is 90 pips to 0.9230
The USD/CHF has caught a drift to the upside after recording its intra-day low of 0.9233 on June 10th 2015. This marked the end of its corrective phase which formed from its intra-day high of 0.9543 reached on May 27th 2015. The drift higher endured a series of higher lows and allowed for an ascending support level to be formed which has applied upward pressure on this currency pair. Binary option traders interested in how to do binary option trading profitably can take advantage of binary call options in the USD/CHF currency pair.
Price action is now stabilizing inside of its horizontal support level which is being enforced by its ascending support level. The USD/CHF is expected to advance into its descending resistance level from where a breakout is likely to follow. Binary options traders can benefit from the anticipated move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.9320 for a risk/reward ratio of 1.0/2.44.
The USD/CHF witnessed a contraction in volatility as price action receded from its horizontal resistance level, but an increase in volatility accompanied the false breakdown. Volatility is set to increase further as this currency pair is trading inside of a triangle formation. Sellers may attempt to increase downward pressure in order force a breakdown. Buyers are favored to take the increase in upward momentum in order to successfully push the USD/CHF into its descending resistance level from where more upside is expected until this currency pair can challenge its horizontal resistance level.
The first resistance level for the USD/CHF is located at its descending resistance level around the 0.9420 mark. An increase in volatility is anticipated at this crucial resistance level as a breakout above it will force a change in momentum. The next resistance level awaits the USD/CHF at its intra-day high of 0.9502 which was recorded on June 5th 2015. This level represents the last instance where its descending resistance level reversed an advance. The final resistance level is set at its intra-day high of 0.9543 reached on May 27th 2015 from where its descending resistance level originates and a double top formation may emerge.
The following economic data out of the United States is expected to impact the base currency, the US Dollar, of the USD/CHF currency pair:
Federal Open Market Committee of the Federal Reserve Interest Rate Announcement:
• Expectations: Interest rates unchanged at 0.25%
• Previous FOMC Announcement: Interest rates unchanged at 0.25%
• Impact on the US Dollar: The expected inaction on interest rates may be accompanied by favorable guidance on the course of future monetary policy and apply upward pressure on the US Dollar; this favors binary call options in the USD/CHF currency pair
In addition the following economic report out of Switzerland is expected to impact the quote currency, the Swiss Franc, of the USD/CHF currency pair:
ZEW Survey Expectations Index for the month of June:
• Expectations: A level of -0.2 is expected for the month of June
• Previous Report’s Data: A level of -0.1 was reported in the month of May
• Impact on the Swiss Franc: The anticipated reading out of the ZEW Survey Expectations Index is likely to pressure the Swiss Franc to the downside which favors binary call options in the USD/CHF currency pair