Article source: investing.com
Today’s Binary Options Trading Strategy:
• Currency Pair: USDCAD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.2050
• Upside Potential: The upside potential for this binary call option is 520 pips to 1.2570
• Downside Potential: The downside potential for this binary call option is 250 pips to 1.1800
The USDCAD has been exposed to a big corrective phase which developed from its intra-day high of 1.2669 recorded on April 10th 2015. This level also represents the origin of the descending resistance level from its bearish price channel. The descending support level originated from its intra-day low of 1.2387 which was reached on April 8th 2015. The bearish price channel guided the USDCAD down to its current intra-day low of 1.1944 which was recorded yesterday on April 29th 2015. This level also marks the bottom of its new horizontal support level.
Price action is currently trading inside of its horizontal support level which is being intersected by its bearish price channel. The USDCAD is anticipated to drift into its descending resistance level from where a breakout is favored. Binary options traders can profit from the expected breakout with binary call options.Today’s binary options trading strategy suggests call options to be placed on dips below 1.2050 for a risk/reward ratio of 1.0/2.08.
The USDCAD was exposed to a trading environment with decreased volatility which accompanied the move to the downside, but an increase in volatility is anticipated as buyers and sellers are set to face off inside of a new horizontal support level. Sellers are likely to attempt a breakdown in order to extend the corrective phase. Buyers are expected to drift into its descending resistance level and force a breakout above its bearish price channel. This favors binary call options in the USDCAD currency pair.
The first resistance level awaits the USDCAD at its descending resistance level around the 1.2100 mark. This level also coincides with the top end of its horizontal support level. A breakout will lead the EURGBP to its intra-day high of 1.2305 which was recorded on April 21st 2015. This level marks the high of a previous advance. The next resistance level is located at its intra-day low of 1.2387 which was reached on April 8th 2015 from where the descending support level originates. The USDCAD will meet its final resistance level at its intra-day high of 1.2669 which was recorded on April 10th 2015.
The following economic data out of the United States is expected to impact the base currency, the US Dollar, of the USDCAD currency pair:
Personal Income & Personal Spending for the month of March:
• Expectations: An increase of 0.2% in personal income is expected for the month of March, an increase of 0.5% in personal spending
• Previous Report’s Data: An increase of 0.4% in personal income was reported in the month of February, an increase of 0.1% in personal spending
• Impact on the US Dollar: The anticipated increase in personal spending out of the US may suffice to apply upward pressure on the US Dollar which favors binary call options in the USDCAD currency pair
In addition the following economic report out of Canada is expected to impact the quote currency, the Canadian Dollar, of the USDCAD currency pair:
Gross Domestic Product for the month of February:
• Expectations: A monthly contraction of 0.1% is expected for February, an annualized increase of 1.9%
• Previous Report’s Data: A monthly contraction of 0.1% was reported in January, an annualized increase of 2.4%
• Impact on the Canadian Dollar: The expected annualized slowdown in the Canadian GDP is likely to pressure the Canadian Dollar to the downside; this favors binary call options in the USDCAD currency pair.