AUDUSD Binary Put Option – May 21st 2015
GOption | May 21, 2015 05:12AM ET
Today’s Binary Options Trading Strategy:
• Currency Pair: AUDUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dipsbelow0.7900
• Upside Potential: The upside potential for this binary call option is 260 pips to 0.8160
• Downside Potential: The downside potential for this binary call option is 110 pips to 0.7790
The AUDUSD is currently in the process to stabilize inside of its enforced horizontal support level after being exposed to a corrective phase which developed after this currency pair reached its intra-day high of 0.8163 on May 14th 2015. The ascending support level which emerged from its intra-day low of 0.7711 recorded on April 23rd 2015 has intersected its horizontal support level and enforced it. The best binary options trading approach favors an upward bias as the AUDUSD is expected to retrace its move to the downside over the next few trading sessions.
Price action is currently trading inside of its enforced horizontal support level from where further downward momentum is receding.The AUDUSD is expectedto stabilize and the ascending support level is likely to guide this currency pair to the upside.Binary options traders can profitfrom the anticipatedadvancewith binary call options. Today’s binary options trading strategy suggestscall options to be placed on dipsbelow0.7900 for a risk/reward ratio of 1.0/2.36.
Volatility decreased during the corrective phase away from its most recent intra-day high, but an increase in volatility is expected as price action is trading at a crucial horizontal support level which is being enforced by its ascending support level. Sellers are anticipated to extend the move to the downside with a breakdown below its ascending support level which is unlikely to materialize below its horizontal support level. Buyers are favored to successfully force a price action reversal which is expected to challenge its most recent intra-day high as this remains the best binary options trading strategy for the AUDUSD currency pair.
The AUDUSD will face its first resistance level at its intra-day high of 0.7968 which was reached on May 8th 2015 from where a breakout can take this currency pair to its intra-day high of 0.8030 recorded on May 6th 2015. This level represents the high of a previous bounce off of its ascending support level. The next resistance level awaits the AUDUSD at its intra-day high of 0.8075 which was reached on April 29th 2015. The final resistance level is located at its intra-day high of 0.8163 recorded on May 14th 2015 from where a double top formation may emerge.
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The following economic data out of Australia already impacted the base currency, the Australian Dollar, of the AUDUSD currency pair:
Consumer Inflation Expectations for the month of May:
• Expectations: A monthly increase of 3.1%was expected for May
• Previous Report’s Data: A monthly increase of 3.4% was reported in April
• Released Data: A monthly increase of 3.6% was reported for May
• Impact on the Australian Dollar: The reported monthlyincrease in consumer inflation expectations sufficed to pressure the Australian Dollar to the upside whichfavors binary call options in the AUDUSD currency pair
In addition the following economic report out of the United Statesis expected to impact the quote currency, the US Dollar, of the AUDUSD currency pair:
Existing Home Sales for the month ofApril:
• Expectations: An increase of 0.8% is expected for the month of April
• Previous Report’s Data: An increase of 6.1% was reported in the month of March
• Impact on the US Dollar: The anticipated slowdown in existing home salesis likely to apply downward pressure on the US Dollar;this favors binary call options in the AUDUSD currency pair
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