EUR/CHF Stuck In A Sideways Trend
GOption | Sep 24, 2014 03:38AM ET
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 1.2070
• Upside Potential: The upside potential for this binary call option is 60 pips to 1.2130
• Downside Potential: The downside potential for this binary call option is 30 pips to 1.2040
The EUR/CHF has been stuck in a sideways trend with a slight upward drift created through a series of higher lows which created an ascending support line expected to exercise upward pressure on the EUR/CHF currency pair. The EUR/CHF has recorded an intra-day low of 1.2044 on September 4th 2014 while it reached an intra-day high of 1.2118 on September 10th 2014.
Price action is grinding along its horizontal support line which is being intersected by its ascending support line for a stronger overall support level from where the EUR/CHF is expected to launch an advance. Binary options traders can take advantage from the expected move higher with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.2070 for a risk/reward ratio of 1.0/2.00.
Sellers may attempt to force a breakdown below the current double support level. Any move lower is expected to be halted by the intra-day low set on September 4th 2014 and should be taken as a better entry opportunity into binary call options for the EUR/CHF currency pair. The EUR/CHF may experience a few choppy trading sessions, but is expected to advance from current levels with an expected breakout above its most recent intra-day high of 1.2118.
The next resistance level awaits the EUR/CHF at the 1.2080 mark which is an intra-day low reached on September 16th 2014 and has previously pushed this currency pair higher and into its most recent intra-day high of 1.2118. A successful breakout will take EUR/CHF to the psychological barrier of 1.2100 while the final resistance awaits this currency pair at the 1.2118 level from where a breakout is likely should upward momentum be strong enough.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURCHF currency pair:
German IFO Data for the month of September:
• Expectations: IFO Business Climate at 105.8, IFO Current Assessment at 110.2, IFO Expectations at 101.2
• Previous Month’s Data: IFO Business Climate at 106.3 in August, IFO Current Assessment at 111.1, IFO Expectations at 101.7
• Impact on the Euro: The expected decrease in the IFO components are accounted for in the current price of the Euro; this favors binary call options in the EURCHF currency pair
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In addition the following economic report out Switzerland is expected to impact the quote currency, the Swiss Franc, of the EURCHF currency pair:
UBS Consumption Indicator for the month of August:
• Expectations: A reading above 1.66 is expected for August
• Previous Month’s Data: A reading of 1.66 was reported in July
• Impact on the Swiss Franc: The expected increase in the UBS Consumption Indicator is expected to be overshadowed by data out of the Eurozone which favors binary call options in the EUR/CHF currency pair
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