December 3, 2014 5:38am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: USDCHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.9700
• Downside Potential: The downside potential for this binary put option is 145 pips to 0.9555
• Upside Potential: The upside potential for this binary put option is 50 pips to 0.9750
The USDCHF is now in the process of completing a move higher which was fueled by its ascending support level. The current move to the upside has been halted by its descending resistance level which has merged with its horizontal resistance level. This currency pair has previously moved lower after reaching an intra-day high of 0.9742 on November 7th 2014. The downside move recorded an intra-day low of 0.9530 on November 19th 2014. The ascending support level will provide a crucial battle ground for buyers and sellers as it has managed to halt a move to the downside on two different occasions.
Price action is now trading at its double resistance level as the descending resistance level has merged with its horizontal resistance level. The USDCHF is anticipated to breakdown below its horizontal resistance level and accelerate to the downside. Binary options traders can profit from the expected breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 0.9700 for a risk/reward ratio of 1.0/2.90.
Volatility may increase as a standoff between buyers and sellers at the merged resistance level is expected. The current upward momentum may suffice for a breakout above its current resistance level, but is expected to be limited to its intra-day high of 0.9742 which was reached on November 7th 2014 from where a double top formation could reverse the move lower. Sellers may try to use the current resistance level coupled with the overextended move higher in order to force a breakdown which is likely to accelerate to the downside. This favors binary put options in the USDCHF currency pair.
The first support level awaits the USDCHF at its ascending support level around the 0.9670 mark. A breakdown below this level will take this currency pair to its intra-day low of 0.9615 which was reached on December 1st 2014. This level represents the last time the USDCHF touched its ascending support level before accelerating to the upside. The final support level is located at its intra-day low of 0.9530 which was reached on November 19th 2014.
The following economic data out of the United States is expected to impact the base currency, the US Dollar, of the USDCHF currency pair:
ADP Employment Change for the month of November:
• Expectations: An increase of 224,000 private sector jobs is expected for the month of November
• Previous Report’s Data: An increase of 230,000 private sector jobs was reported in October
• Impact on the US Dollar: The expected slowdown in private sector jobs could be an indicator for a weaker non-farm payroll report on Friday and pressure the US Dollar to the downside; this favors binary put options in the USDCHF currency pair
In addition the following economic report out of Switzerland is expected to impact the quote currency, the Swiss Franc, of the USDCHF currency pair:
Gross Domestic Product for the third-quarter of 2014:
• Expectations: A quarterly expansion of 0.3% is expected for the third-quarter, an annualized expansion 1.4%
• Previous Report’s Data: A quarterly expansion of 0.2% was reported in the second-quarter, an annualized expansion 1.4%
• Impact on the Swiss Franc: The expected increase in the expansion for the quarterly GDP figure could suffice to pressure the Swiss Franc to the upside which favors binary put options in the USDCHF currency pair