USD/CAD Binary Options Call – June 11th 2015
GOption | Jun 11, 2015 05:07AM ET
Today’s Binary Options Trading Strategy:
• Currency Pair: USD/CAD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.2275
• Upside Potential: The upside potential for this binary call option is 285 pips to 1.2560
• Downside Potential: The downside potential for this binary call option is 105 pips to 1.2170
The USD/CAD has corrected away from its most recent intra-day high of 1.2562 which was reached on June 5th 2015 and the move to the downside recorded an intra-day low of 1.2202 yesterday on June 10th 2015. This intra-day low is located inside of its horizontal support level, enforced by its ascending support level which originated from its intra-day low of 1.1919 reached on May 14th 2015. Websites which report on binary options trading strategies that work have correctly identified the move to the downside.
Price action has now reversed into its enforced horizontal support level from where a change in momentum is likely to occur as this currency pair is trading slightly above this level. The USD/CAD is expected to move to the upside, guided higher by its ascending support level. Binary options traders can take advantage from the anticipated advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.2275 for a risk/reward ratio of 1.0/2.71.
Volatility contracted as the USD/CAD enjoyed its corrective phase away from its horizontal resistance level, but a sharp increase in volatility is anticipated as price action is trading just above of a crucial horizontal support level which is being intersected by its ascending support level. Sellers are likely to exercise downward pressure in order to force a breakdown which is unlikely to materialize below its horizontal support level. Buyers are favored to take advantage of its enforced support level and push this currency pair to the upside in order to challenge its horizontal resistance level.
The USD/CAD will run into its first resistance level at its intra-day high of 1.2322 recorded on May 22nd 2015. This level represents the high of a previous advance prior to a small drift to the downside before the advance resumed. A breakout above this level will take the USD/CAD to its intra-day high of 1.2512 which was reached on May 28th 2015. This level marks the low end of its horizontal resistance level. The final resistance level is located at its intra-day high of 1.2562 recorded on June 5th 2015 from where a double top formation may emerge.
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The following economic data out of the United Sates is expected to impact the base currency, the US Dollar, of the USD/CAD currency pair:
Advanced Retail Sales for the month of May:
• Expectations: An increase of 1.2% is expected for the month of May
• Previous Report’s Data: A level of 0.0% was reported in the month of April
• Impact on the US Dollar: The anticipated increase in advanced retail sales is likely to pressure the US Dollar to the upside which favors binary call options in the USD/CAD currency pair
In addition the following economic report out of Canada is expected to impact the quote currency, the Canadian Dollar, of the USD/CAD currency pair:
New Housing Price Index for the month of April:
• Expectations: A monthly increase of 0.2% is expected for April, an annualized increase of 1.3%
• Previous Report’s Data: A monthly level of 0.0% was reported for the month of March, an annualized increase of 1.2%
• Impact on the Canadian Dollar: The expected increase in the New Housing Price Index is likely to be overshadowed by economic data out of the US; this favors binary call options in the USD/CAD currency pair
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