Today’s Binary Options Trading Strategy:
• Currency Pair: AUDUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.7850
• Downside Potential: The downside potential for this binary put option is 315 pips to 0.7535
• Upside Potential: The upside potential for this binary put option is 150 pips to 0.8000
The AUDUSD has enjoyed a sharp move to the upside from its intra-day low of 0.7553 which was recorded on April 13th 2015. This level represents a higher low as compared to its previous intra-day low of 0.7533 reached on April 2nd 2015. A steep ascending support level emerged from its current intra-day low. Between the two lows lies an intra-day high of 0.7738 which was recorded on April 9th 2015 from where an ascending resistance level developed. The ascending support level as well as the ascending resistance level formed a rising wedge formation which is a bearish chart pattern.
Price action is now trading inside of its horizontal resistance level from where further upward momentum is being depleted. The AUDUSD is expected to breakdown below its bearish chart pattern and accelerate down into its horizontal support level. Binary options traders can benefit 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 0.7850 for a risk/reward ratio of 1.0/2.10.
The AUDUSD was exposed to a trading environment with decreased volatility during its advance inside of its rising wedge formation, but an increase in volatility is anticipated as buyers and sellers are set to face off inside of a horizontal resistance level which is being intersected by its rising wedge formation. Buyers are likely to attempt a breakout in order to extend the advance. Sellers are favored to take the horizontal resistance level together with is bearish chart pattern as a solid platform for a full price action reversal which will take the AUDUSD down into its horizontal support level.
The first support level awaits the AUDUSD at its intra-day high of 0.7738 reached on April 9th 2015 from where its ascending resistance level emerged. A breakdown below this level will take the AUDUSD to its intra-day low of 0.7582 which was recorded on April 1st 2015. This level marks the top end of its horizontal support level. The AUDUSD will meet its final support level at its intra-day low of 0.7533 which was reached on April 2nd 2015 from where further downside potential is limited.
The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
ANZ Roy Morgan Weekly Consumer Confidence Index for the week of April 26th 2015:
• Expectations: A level of 109.2 was expected for the week of April 26th
• Previous Report’s Data: A level of 108.8 was reported in the week of April 19th
• Release Report: A level of 111.8 was reported in the week of April 26th
• Impact on the Australian Dollar: The reported increase in the ANZ Roy Morgan Weekly Consumer Confidence Index has failed to apply upward pressure on the Australian Dollar which favors binary put options in the AUDUSD currency pair
In addition the following economic report out the United States is expected to impact the quote currency, the US Dollar, of the AUDUSD currency pair:
Consumer Confidence for the month of April:
• Expectations: A reading of 102.5 is expected for the month of April
• Previous Report’s Data: A reading of 101.3 was reported in the month of March
• Impact on the US Dollar: The expected increase in US consumer confidence is likely to pressure the US Dollar to the upside; this favors binary put options in the AUDUSD currency pair
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