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USDCAD BINARY PUT OPTION – DECEMBER 5TH 2014

BITCOIN 781.950 11:20 03.12
BitCoin/CNY 5382.550 11:20 03.12
BITCOIN 782.045 11:00 03.12
BitCoin/CNY 5383.210 11:00 03.12
BITCOIN 782.136 10:40 03.12
BitCoin/CNY 5383.835 10:40 03.12
BITCOIN 782.186 10:20 03.12
BitCoin/CNY 5384.175 10:20 03.12
BITCOIN 782.498 10:00 03.12
BitCoin/CNY 5386.325 10:00 03.12
BITCOIN 780.288 09:40 03.12
BitCoin/CNY 5371.115 09:40 03.12
BITCOIN 781.315 09:20 03.12
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By: Adam Stone
December 5, 2014 6:23am GMT, London UK

Today’s Binary Options Trading Strategy:

• Currency Pair: USDCAD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.1390
• Downside Potential: The downside potential for this binary put option is 190 pips to 1.1200
• Upside Potential: The upside potential for this binary put option is 65 pips to 1.1455

The USDCAD has halted its move to the upside after recording an intra-day high of 1.1459 on December 1st 2014. A move to the downside took this currency pair to an intra-day low of 1.1313 which was also reached on December 1st 2014. A short reversal pressured the USDCAD back into its horizontal resistance level where it ran into its descending resistance level. The following move lower recorded a higher low and the USDCAD traded back up into its descending resistance level.

USDCAD

Price action is currently trading inside its horizontal resistance level which is being enforced by its descending resistance level. The USDCAD is likely to be guided down into its intersection between its descending resistance level and its ascending support level from where breakdown is anticipated. Binary options traders can take advantage from the anticipated move to the downside with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.1390 for a risk/reward ratio of 1.0/2.93.

The USDCAD is expected to witness a sharp spike in volatility as price action is approaching the intersection of its triangle formation. Buyers may attempt to halt the development of downward momentum and pressure this currency pair above its descending resistance level. Any potential breakout is likely to be limited to its intra-day high of 1.1459. Sellers are favored to take the descending resistance level into the intersection with its ascending support level from where a breakdown is expected to accelerate the USDCAD to the downside.

The USDCAD will face its first support level at the intersection between its descending resistance level and its ascending support level located at the 1.1345 mark. A breakdown below this level will take the USDCAD to its intra-day low of 1.1260 which was reached on November 18th 2014. This level has previously halted a move to the downside and push the USDCAD back into its descending resistance level. The final support level is located at its intra-day low of 1.1191 which was recorded on November 21st 2014.The potential of a double bottom may hinder an extended move lower.

The following economic data out of the United States is expected to impact the base currency, the US Dollar, of the USDCAD currency pair:

Non-Farm Payroll Report & Unemployment Rate for the month of November:

• Expectations: An addition of 228,000 jobs and an unemployment rate of 5.8% is expected for November
• Previous Report’s Data: An addition of 214,000 jobs and an unemployment rate of 5.8% was reported for October
• Impact on the US Dollar: The composition of the NFP report, full-time jobs versus part-time jobs, is expected to disappoint and pressure the US Dollar to the downside which favors binary put options in the USDCAD currency pair

In addition the following economic report out of Canada is expected to impact the quote currency, the Canadian Dollar, of the USDCAD currency pair:

Employment Report & Unemployment Rate for the month of November:

• Expectations: An addition of 5,000 jobs and an unemployment rate of 6.6% is expected for November
• Previous Report’s Data: An addition of 43,100 jobs and an unemployment rate of 6.5% was reported for October
• Impact on the Canadian Dollar: The composition of the previous employment reports has favored a strong increase in full-time jobs and today’s report is likely to follow suite which will lift the Canadian Dollar; this favors binary put options in the USDCAD currency pair

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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