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 1.0375
• Upside Potential: The upside potential for this binary call option is 195 pips to 1.0570
• Downside Potential: The downside potential for this binary call option is 60 pips to 1.0315
The EUR/CHF is struggling for direction after yesterday’s gap to the downside at the open of this week’s trading action which was caused by the announcement over the weekend of a Greek referendum on new austerity measures. This currency pair reached an intra-day low of 1.0313 yesterday on June 29th 2015. This represented a false breakdown below its horizontal support level which was followed by a spike to the upside and one to the downside. Binary option traders seeking to add call option trading during today’s trading session are advised to look at the EUR/CHF and the attractive upside it offers.
Price action is now trading inside of its horizontal support level from where further downside momentum is being depleted. The EUR/CHF is anticipated to stabilize and drift into its descending resistance level from where more upside is favored. Binary options traders can benefit from the expected advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.0375 for a risk/reward ratio of 1.0/3.25.
Volatility rose sharply as the EUR/CHF opened with a gap to the downside which was followed by erratic trading above and below its horizontal support level. Binary option traders should expected volatility to remain at elevated levels as buyers and sellers are set to face off inside of a crucial horizontal support level. Sellers are anticipated to take advantage of the increase in volatility and force a breakdown below its horizontal support level, but a move below it most recent intra-day low is unlikely. Buyers are favored to push the EUR/CHF into its descending resistance level from where upward momentum should suffice for an additional breakout.
The EUR/CHF will be faced with its first resistance level at its intra-day high of 1.0440 which was reached yesterday on June 29th 2015. This level marks the high which followed the gap to the downside. A breakout above this level will take the EUR/CHF to its descending resistance level around the 1.0480 mark from where more volatility is expected. The next resistance level is located at its intra-day high of 1.0546 recorded on June 25th 2015. This level represents the high prior to the current move to the downside. The final resistance level awaits the EUR/CHF at its intra-day high of 1.0574 which was reached on June 4th 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 Retail Sales for the month of May:
• Expectations: A monthly level of 0.0% is expected for May, an annualize increase of 2.8%
• Previous Report’s Data: A monthly increase of 1.3% was reported in April, an annualized increase of 1.0%
• Impact on the Euro: The anticipated annualized increase in German retail sales is likely to pressure the Euro to the upside; this favors binary call options in the EUR/CHF currency pair
In addition the following economic report out Switzerland is expected to impact the quote currency, the Swiss Franc, of the EUR/CHF currency pair:
KOF Leading Indicator for the month of June:
• Expectations: A level of 93.7 is expected for the month of June
• Previous Report’s Data: A level of 93.1 was reported in the month of May
• Impact on the Swiss Franc: The expected increase in the KOF Leading Indicator may not suffice to apply upward pressure on the Swiss Franc which favors binary call options in the EUR/CHF currency pair
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