Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/USD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.1020
• Upside Potential: The upside potential for this binary call option is 415 pips to 1.1435
• Downside Potential: The downside potential for this binary call option is 100 pips to 1.0920
The EUR/USD has settled into its horizontal support level after initially recovering from a false breakdown below it which took this currency pair to an intra-day low of 1.0916 on July 7th 2015. The EUR/USD managed to bounce off of this intra-day low and advance to its intra-day high of 1.1216 reached on July 10th 2015 from where its descending resistance level increased downward pressure and forced a reversal. The descending resistance level originated from its intra-day high of 1.1437 which was recorded on June 18th 2015.
Price action is now trading inside of its horizontal support level which is being enforced by its ascending support level. The EUR/USD is expected to breakout above its descending resistance level and reverse its corrective phase. Binary options traders can take advantage from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.1020 for a risk/reward ratio of 1.0/4.15.
Volatility contracted as price action moved away from its horizontal resistance level, but the false breakdown below its horizontal support level has invited an increase in volatility. Binary options traders should expect volatility to spike as the EUR/USD is trading inside of a triangle formation. Sellers are expected to pressure this currency pair into a breakdown, but buyers are favored to successfully force a breakout above its descending resistance level from where the EUR/USD can advance. Binary option trading courses are using today’s binary call option recommendation in their live courses as a perfect example for a profitable binary option trade.
The EUR/USD will face its first resistance level at its descending resistance level around the 1.1100 mark. A breakout above this key level will take the EUR/USD to its intra-day high of 1.1216 which was reached on July 10th 2015. This level represents the high of its bounce off of its false breakdown below its horizontal support level. The next resistance level is located at its intra-day high of 1.1330 recorded on June 16th 2015 from where a final breakout will take this currency pair to its intra-day high of 1.1437 which was reached on June 18th 2015. A double top formation may emerge and challenge further upside.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EUR/USD currency pair:
Eurozone Industrial Production for the month of May:
• Expectations: A monthly increase of 0.2% is expected for May, an annualized increase of 2.0%
• Previous Announcement: A monthly increase of 0.1% was reported in April, an annualized increase of 0.8%
• Impact on the Euro: The expected increase in Eurozone industrial production is likely to pressure the Euro to the upside which favors binary call options in the EUR/USD currency pair
In addition the following economic report out of the United States is expected to impact the quote currency, the US Dollar, of the EUR/USD currency pair:
Advanced Retail Sales for the month of June:
• Expectations: An increase of 0.3% is expected for the month of June
• Previous Report’s Data: An increase of 1.2% was reported for the month of May
• Impact on the US Dollar: The anticipated slowdown in advanced retail sales is likely to apply downward pressure on the US Dollar; this favors binary call options in the EUR/USD currency pair.
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