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USDCHF BINARY CALL OPTION – OCTOBER 20TH 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
October 20th 2014 5:35am GMT, London UK

Today’s Binary Options Trading Strategy:

• Currency Pair: USDCHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 0.9470
• Upside Potential: The upside potential for this binary call option is 220 pips to 0.9690
• Downside Potential: The downside potential for this binary call option is 110 pips to 0.9360

The USDCHF has experienced a strong price action reversal after reaching an intra-day high of 0.9687 on October 6th 2014. A series of economic disappointments out of the United States have pressured this currency pair lower until it reached an intra-day low of 0.9360 on October 15th 2014. After dropping to its intra-day low, which also marked a false breakdown below its current horizontal support level, the USDCHF managed to bounce higher and is now attempting a breakout.

Price action is now trading at a crucial level and the expected breakout is likely to mature into a bigger price action reversal which will challenge its ascending resistance level for more upside potential. Binary options traders can benefit from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.9470 for a risk/reward ratio of 1.0/2.00.

The breakout and subsequent move higher is likely to be accompanied by an increase in volatility as sellers seek to extend the move lower and attempt a second breakdown. At the same time buyers are expected to hold firm and use the current horizontal support level as a platform to reverse price action and move higher until a potential double top formation, a bearish chart pattern, will be formed. The way to a double top formation will be challenged by two ascending resistance lines which are expected to give in due to the accumulated upward momentum in the USDCHF.

USDCHF binary options trading

The first resistance awaits the USDCHF at the 0.9491 level which is an intra-day low reached on October 16th 2014 which is also where the descending resistance line is expected to exercise downward pressure on this currency pair. A breakout above this level will take the USDCHF to its ascending resistance level which is located around the 0.9565 level. The final resistance level on the way to the expected double top is located at the intra-day high of 0.9593 which it reached on October 10th 2014.

There is no economic data out of the United States expected which can impact the base currency, the US Dollar, of the USDCHF currency pair. This will allow price action to resume its bounce off of its most recent intra-day low which favors binary call options in the USDCHF currency pair.

In addition there is no economic report which will be released out of Switzerland which can impact the quote currency, the Swiss Franc, of the USDCHF currency pair. Given that there are more positive pressures acting on the US Dollar to move higher than there are on the Swiss Franc to move higher the absence of economic reports out of Switzerland further favors binary call options in the USDCHF 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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