EURUSD Binary Options Strategy: 15min Chart Projections

EURUSD Binary Strategy

EURUSD has been one of the less attractive currency pairs to trade in the Foreign Exchange (Forex) market., however, Euro Dollar tight range has no effect for binary options traders.

EURUSD 15min Chart

Please click on the chart to enlarge:

EURUSD 15min Chart 14/08/16

EURUSD 15min Chart 14/08/16

We often carry our binary options intraday stratgies on the hourly chart but we find the 15min chart to be more appropriate based on our technical models.

EURUSD inititial resistance is supplied by the 21 Moving Average (MA, in orange). The 200MA (in purple) marks the nearest support. If EURUSD does not post a substantial gap at the opening of the Forex market (21:00 GMT) the price may be held into a tight range throughout the Asian session between the MA’s. Upon a successful re-test of either of the MA’s a 30min expiation may be appropriate. A more aggressive approach may be used by opting for an entry via the 5min chart based on the MA’s on the 15min chart, which may allow 15min expiation for call / put options, depending if the 200MA or 21MA is being tested by the market.

The price range may offer multiple trades until a breakout is noted. A break above 1.1166 may be insufficient for placing a call option. If the price re-tests 1.1171 it may provide a comfortable entry for a put trade but it 1.1171 may only be used once upon such a re-test. A break above 1.1171 may pave the way for stronger gains towards 1.1180.

A break below the 200MA (in purple) may trigger further selling in EURUSD, targeting 1.1150. Upon a bearish breakout, the price may require to re-test the 200MA before a resumption of the downtrend towards 1.1150. If 1.1150 is re-tested it may provide a comfortable entry via a 60min expiration.

As the strategy is released prior to the opening of the Forex market the gap will play a key role in our analysis. If EURUSD gaps above 1.1180 or below 1.1150 our strategy will be invalidated.

To recap, once a support level is breached it turns into a resistance level. When a resistance level is taken out by the market automatically transitions into a support level.  Our EURUSD intraday binary strategy may therefore produce multiple entries in the market. The life expectancy of the strategy is expected to be short lived and is unlikely to be relevant at Monday’s close.

They key release for this week is the German ZEW Economic Sentiment,  which is scheduled to be published on Tuesday.

As all trades are closed this page can now be accessed by all traders. Open trades and relevant intraday strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.


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