Today’s Binary Options Trading Strategy: • Currency Pair: USDCAD • Timeframe: H4 (Hourly Chart) • Binary Option Trading Recommendation: Seek binary put options on rallies above 1.2480 • Downside Potential: The downside potential for this binary put option is 560 pips to 1.1920 • Upside Potential: The upside potential for this binary put option is 185 pips to 1.2665
The USDCAD is in the final stages of ending its strong advance which developed off of its intra-day low of 1.1919 reached on May 14th 2015. The move to the upside was guided by its bullish price channel; the ascending support level originated from its low of 1.1925 also recorded on May 14th 2015 while its ascending resistance level can trace its origin to its intra-day low of 1.2045 which was reached on May 8th 2015. The narrow bullish price channel was not violated and took the USDCAD to its horizontal resistance level from where upward momentum started to recede.
Price action is currently trading inside of its horizontal resistance level from where a bearish price channel emerged. The USDCAD is expected to enter a corrective phase inside of this bearish price channel. Binary options traders can profit from the anticipated move to the downside with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.2480 for a risk/reward ratio of 1.0/3.03.
Volatility contracted as the bullish price channel allowed for an orderly advance, but binary options trading platform reviews show that traders expect a sharp increase in volatility as the USDCAD is trading inside of a rare rhombus formation. Buyers are likely to push this currency pair higher inside of its bullish price channel, but its current intra-day high of 1.2563 which was recorded on June 1st 2015 is likely to remain intact. Sellers are favored to force a corrective phase inside of its bearish price channel which can take this currency pair back down to its horizontal support level.
The USDCAD will face its first support level at its intra-day low of 1.2367 which was reached on June 2nd 2015. This level marks the low of a breakdown below its horizontal resistance level as well as the intersection of the ascending support level of its bullish price channel and the descending support level of its bearish price channel. The next support level awaits the USDCAD at its intra-day low of 1.2169 recorded on May 20th 2015. The final support level is located at its intra-day low of 1.1919 which was reached on May 14th 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: Non-Farm Payrolls & Unemployment Rate for the month of May: • Expectations: The addition of 227,000 jobs is expected for the month of May, an unemployment rate of 5.4% • Previous Report’s Data: The addition of 223,000 jobs was reported in the month of April, an unemployment rate of 5.4% • Impact on the US Dollar: The anticipated jobs additions are vulnerable for disappointment and likely pressure the US Dollar to the downside which favors binary put 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: Employment Report for the month of May: • Expectations: The addition of 10,000 jobs is expected for the month of May, an unemployment rate of 6.8% • Previous Report’s Data: The loss of 19,700 jobs was reported in the month of April, an unemployment rate of 6.8% • Impact on the Canadian Dollar: The expected turnaround in the Canadian labor market is likely to apply upward pressure on the Canadian Dollar; this favors binary put options in the USDCAD currency pair