Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/CHF
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.0360
• Upside Potential: The upside potential for this binary call option is 160 pips to 1.0520
• Downside Potential: The downside potential for this binary call option is 55 pips to 1.0305
The EUR/CHF has corrected from its intra-day high of 1.0506 which was reached on May 15th 2015 to its intra-day low of 1.0323 recorded yesterday on May 26th 2015. The intra-day high from where the move to the downside emerged represents a lower high as compared to its previous intra-day high of 1.0523 reached on April 30th 2015 and a descending resistance level formed as a result. The intra-day low marks a lower low as compared to its previous intra-day low of 1.0304 which was recorded on May 7th 2015 and an ascending support level emerged. The move to the downside was correctly analyzed on the best binary options trading websites.
Price action is now trading at the top of its horizontal support level which is being enforced by its ascending support level. The EUR/CHF is anticipated to move to the upside until it reaches its descending resistance level from where a breakout is favored. Binary options traders can take advantage from the expected move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.0360 for a risk/reward ratio of 1.0/2.91.
The EUR/CHF was exposed to a trading environment which featured a contraction in volatility, but an increase in volatility is expected as this currency pair trades at an enforced support level as well as inside of a wide triangle formation. Sellers are likely to exercise downward pressure on the EUR/CHF in order to keep the downtrend intact, but the intra-day low of 1.0304 is likely to be the limit of a potential breakdown. Buyers are anticipated to take the strength of the enforced support level and take the EUR/CHF to its descending resistance level from where a breakout could extend the advance. This favors binary call options in the EUR/CHF currency pair.
The first resistance level awaits the EURCHF at its intra-day high of 1.0385 which was recorded on May 25th 2015 from where a breakout will take this currency pair to its intra-day high of 1.0451 reached on May 22nd 2015. This level represents the high of a previous drift to the upside. The next resistance level is set at its descending resistance level around the 1.0480 mark where a breakout is favored. The final resistance level is located at its intra-day high of 1.0523 which was recorded on April 30th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EUR/CHF currency pair:
German GfK Consumer Confidence Survey for the month of June:
• Expectations: A level of 10.0 is expected for the month of June
• Previous Report’s Data: A level of 10.1 was reported in the month of May
• Impact on the Euro: The anticipated stability in the German GfK Consumer Confidence Survey is likely to apply upward pressure the Euro; this favors binary call options in the EUR/CHF currency pair
In addition the following economic report out of Switzerland is expected to impact the quote currency, the Swiss Franc, of the EUR/CHF currency pair:
UBS Consumption Indicator for the month of April:
• Expectations: A level of 1.25 is expected for the month of April
• Previous Report’s Data: A level of 1.35 was reported in the month of March
• Impact on the Swiss Franc: The expected slowdown in the UBS Consumption Indicator is likely to pressure the Swiss Franc to the downside which favors binary call options in the EUR/CHF currency pair
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