EURUSD Intraday Binary Options Analysis: Perfect Day for Short-Term Traders

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EURUSD Technical Analysis

Our intraday binary options trading strategy for EURUSD focuses on the 60min chart. After studying the chart it appears Euro Dollar is likely to provide more trading signals for put option than call options.

EURUSD 60min Chart

Please click on the chart to enlarge:

EURUSD 60min Chart 18/08/15

EURUSD 60min Chart 18/08/15

EURUSD Binary Options Intraday Strategy

The first thing we note is the contraction of the price as evident by the two blue lines, possibly due to the upcoming vote on Greece and the FOMC statement that are both due on Wednesday. The initial resistance can be found at 1.1085, supported by the 21 Moving Average (MA, in purple). A re-test of the resistance may yield to corrective weakness towards 1.10170 initially. For this re-test an hourly re-test is preferred unless a strong entry is provided on the 15min chart.

A break above the immediate resistance (1.1085) and the 21MA will shift the focus to 1.1097. Due to the narrow distance between the initial resistance and the latter resistance breakout strategies may not be wise. Upon a successful re-test of 1.1097 price may retrace back towards 1.1085. Multiple trades may be initiated between those levels until a breakout occurs. These may very well provide short-term traders in the binary options market with optimal market conditions. Should the price break above 1.1097, the 100MA (in black) and the 55 MA (in green) may act as the next resistance level. It is possible a sharp price movement, a bullish spike may trigger the break above 1.1097 and may be brought to a halt by the MA’s. If a spike occurs it may trade briefly above the MA’s where 1.1123 is expected to contain the weakness on first test.

In scenario multiple binary options may be executed via different time expiration, ranging from 60 seconds to 30 minutes. Only a firm break above 1.1123 may suggest further gains are due towards the upper resistance (in blue) where a break above may unleash moderate gains in EURUSD.

We are aware of the fact that is the 55MA crosses the 100MA from above it is often classified as bearish signal but from our experience it may not prevent EURUSD rising on an intraday level. A break below the lower support (in blue) may lead to further losses in Euro Dollar but the 200MA (in blue) may be able to contain the weakness. A firm break below the 200MA may suggest we are heading for a deeper correction towards 1.0980.

These price levels may become relevant as early as the European session. As you notice the market is deciding where the technical entries are based on the technical analysis we conduct. We can conclude that based on the 60min chart it may be an attractive day for short term expiration such as 60 seconds, 2 minutes and 5 minutes. We are not promoting such expirations as the risk of the trade expiring out the money is significantly higher but this is what we learn from the chart based on our market experience. We suggest combining the 60min chart with the 15min chart to perfect the entries in EURUSD. Pricing-in may also be seen ahead of the FOMC statement on Wednesday.

EURUSD 60Min Chart 20 August 2015

Please click on the chart to enlarge:

EURUSD 60min Chart 20/08/15

EURUSD 60min Chart 20/08/15

Above is the outcome of our strategy for EURUSD. Pay close attention to the MA’s.

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