EUR/AUD: Retreated From Recent Intra-day High Of 1.4894

• Currency Pair: EUR/AUD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.4600
• Upside Potential: The upside potential for this binary call option is 290 pips to 1.4890
• Downside Potential: The downside potential for this binary call option is 130 pips to 1.4470

The EUR/AUD has retreated from its most recent intra-day high of 1.4894 which was reached on February 3rd 2015. The drift lower has reached its horizontal support level while an ascending support level already intersected and enforced this level. The EUR/AUD may develop a sideways trend inside its horizontal support level until price action will reach its ascending support level from where a renewed move to the upside anticipated. This currency pair is expected to challenge its most recent intra-day high for a potential breakout.

EUR/AUD

Price action is now trading back inside its horizontal support level from where further selling pressure is fading out. The EUR/AUD is anticipated to stabilize inside its enforced support level and reverse its downtrend in order to test its most recent intra-day high. Binary options traders can benefit from the expected price action reversal with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.4600 for a risk/reward ratio of 1.0/2.23.

The EUR/AUD experienced a gradual decrease in volatility during its move to the downside and away from its most recent intra-day high. As this currency pair is expected to stabilize inside its double support level volatility is likely to increase; buyers and sellers will face off at a crucial support/resistance level. Sellers may attempt to use the existing downward pressure in order to force a breakdown and extend losses; a move which is unlikely to materialize below its ascending support level. Buyers are favored to take the enforced support level for a price action reversal.

The first resistance level awaits the EUR/AUD at its intra-day high of 1.4727 which was reached on February 6th 2015. This level marked the high of a short bounce off of the upper level of its horizontal support level before accelerating to the lower end of this level. A breakout above this level will take the EUR/AUD to its final resistance level at its intra-day high of 1.4894 which was recorded on February 3rd 2015 from where the downward drift emerged. The formation of a double top chart pattern inside its horizontal resistance level may challenge a further advance.

The following economic data out of the eurozone is expected to impact the base currency, the euro, of the EUR/AUD currency pair:
Eurozone Sentix Investor Confidence Index for the month of February:
• Expectations: A level of 3.00 is expected for the month of February
• Previous Report’s Data: A level of 0.9 was reported for the month of January
• Impact on the euro: The expected increase in the Sentix Investor Confidence Index out of the eurozone is anticipated to apply upward pressure on the euro; this favors binary call options in the EUR/AUD currency pair

In addition the following economic report out of Australia already impacted the quote currency, the Australian Dollar, of the EUR/AUD currency pair:
ANZ Job Advertisements for the month of January:
• Expectations: A monthly increase of 1.9% was expected for January
• Previous Report’s Data: A monthly increase of 1.8% was reported for December
• Released Data: A monthly increase of 1.3% was reported for January
• Impact on the Australian dollar: The slowdown in ANZ Job Advertisements is likely to be overshadowed by economic data out of the eurozone which favors binary call options in the EUR/AUD currency pair