Binary Options Analysis for October 26th 2015
Market Recap & Outlook:
Canada released it consumer price index for the month of September which showed a contraction of 0.2% month-over-month and an increase of 1.0% year-over-year. Economists anticipated a contraction of 0.1% and an increase of 1.1% respectively after being reported at 0.0% and 1.3% in August. The core CPI rose by 0.2% month-over-month and 2.1% year-over-year which matched the previous month’s data, but fell short of expectations for an increase of 0.3% and 2.2%.
The preliminary Markit Manufacturing PMI for October out of the United States rose to 54.0. Expectations called for a decrease of 0.2 points to 52.9 from September’s level of 53.1. This was a rare positive surprise out of the US manufacturing sector and contrasts reginal reports which point in the opposite direction. One of the best options platform is offered by BinaryOptions360 to all its binary options traders.
Today’s trading session offers a light start to the week as far as market moving economic reports are concerned which puts additional weight behind the new home sales report out of the US for September. Consensus estimates call for a contraction of 1.0% to 549,000 new homes. This would partially reverse the 5.7% increase to 552,000 new homes which was released in the previous month. The US Dollar could come under an increase of downside pressure following the release of the report.
Today’s Binary Option Trading Recommendations Overview:
• GBP/USD – Binary Call Option
• EUR/CHF – Binary Call Option
• USD/CAD – Binary Put Option
• Platinum – Binary Call Option
• DAX 30 – Binary Put Option
Currency Pairs on today’s Radar Screen:
GBP/USD – The GBP/USD has descended from its intra-day high of 1.5507 reached on October 22nd 2015 into its horizontal support level. The descending 50 Day Moving Average (DMA) crossed below the 200 DMA which is ascending. The Accelerator Oscillator (AC) has formed a positive divergence and the Relative Strength Index (RSI) is trading in oversold conditions as a result of the reversal from extreme oversold territory.
Today’s Binary Options Trading Strategy: Call Option
Price action is now trading above of its horizontal support level. The GBP/USD is expected to drift into its 200 DMA from where more upside is favored. Binary option traders are advised to seek binary call options in the GBP/USD currency pair on dips below 1.5350 on the H1 Hourly Chart. The upside potential for this binary call option is 150 pips to 1.5500 while the downside potential is 75 pips to 1.5275. This results in a risk/reward ratio of 2.00.
EUR/CHF – The EUR/CHF halted its corrective phase after reaching the bottom of its horizontal support level and completed a breakout above it. The 50 DMA is descending and continues to trade below the 200 DMA which is moving lower as well. The AC points towards the formation of a positive divergence while the RSI is trading in neutral territory after ascending from extreme oversold conditions which added to upside momentum.
Today’s Binary Options Trading Strategy: Call Option
Price action is currently trading above of its horizontal support level. The EUR/CHF is anticipated to accelerate back into its horizontal resistance level. Binary option traders are advised to seek binary call options in the EUR/CHF currency pair on dips below 1.0800 on the H1 Hourly Chart. The upside potential for this binary call option is 115 pips to 1.0915 while the downside potential is 40 pips to 1.0760. This results in a risk/reward ratio of 2.88.
USD/CAD – The USD/CAD is depleting upside pressure inside of its horizontal resistance level from where a counter-trend move to the downside is likely to emerge. The ascending 50 DMA has increased the distance to the 200 DMA which is drifting higher. The AC indicates the contraction in positive momentum in this currency pair. The RSI is trading in neutral conditions following the move lower from overbought territory.
Today’s Binary Options Trading Strategy: Put Option
Price action is now trading inside of its horizontal resistance level as downside pressure is on the rise. The USD/CAD is expected to drop into a corrective phase from current levels. Binary option traders are advised to seek binary put options in the USD/CAD currency pair on rallies above 1.3140 on the H1 Hourly Chart. The downside potential for this binary put option is 310 pips to 1.2830 while the upside potential is 135 pips to 1.3275. This results in a risk/reward ratio of 2.30.
Today’s Commodity Trade
Platinum – Platinum is confined to a tight trading range between its ascending support level and its horizontal resistance level. The 50 DMA is moving to the downside and narrowing the gap to the 200 DMA which is ascending. The AC shows the build-up in upside pressure for this precious metal. The RSI is trading in neutral territory as a result of the advance from oversold conditions which added to positive momentum.
Today’s Binary Options Trading Strategy: Call Option
Today’s Equity Index Recommendation
DAX 30 – The DAX 30 is trading inside of its horizontal resistance level from where an extensions of the price spike is unlikely. The ascending 50 DMA maintains its positions above the ascending 200 DMA. The AC formed a negative divergence as the RSI is trading in extreme overbought conditions which is not sustainable; a breakdown is favored to lead the counter0trend move. Free demo binary options trading is available to new traders for educational purposes.
Today’s Binary Options Trading Strategy: Put Option
Price action is now trading inside of its horizontal resistance level with a contraction in positive momentum. The DAX 30 is expected to drop into its 50 DMA from where a breakdown is anticipated. Binary option traders are advised to seek binary put options in the DAX 30 equity index on rallies above 10,800.00 on the H1 Hourly Chart. The downside potential for this binary put option is 107,000 pips to 9,730.00 while the upside potential is 23,000 pips to 11,030.00. This results in a risk/reward ratio of 4.65.
Key Fundamental Data:
Thailand – The trade surplus for September sky-rocketed to $2.79 billion with a decrease of 5.5% in exports year-over-year and a drop of 26.2% in imports. This followed August’s trade surplus of $720 million where exports decreased 6.7% and imports were down by 4.8%.
Singapore – Economists anticipate an increase of 1.0% in industrial production for September month-over-month, but a contraction of 4.6% year-over-year. This would follow August’s contraction of 3.7% and 7.0% respectively.
Eurozone – Expectations for Dutch business confidence call for a level of 3.31 in the month of October, down 0.49 points over the 3.80 which was released in September.
Eurozone – Finish export prices for September are called down by 1.0% year-over-year and import prices are anticipated to drop by 8.0% after posting a contraction of 1.5% and 7.9% in the previous month.
Eurozone – Economists anticipate a decrease of 0.7 points in the German IFO Business Climate for October to a level of 107.8 as IFO Expectations are expected to come in at 102.4 following September’s level of 103.3. IFO Current Conditions are set to fall to 113.5 after being reported at 114.0 in September.
United Kingdom – The CBI Business Optimism Index for the fourth-quarter is favored to plunge by 75% to a level of 2 from the third-quarter’s level of 8.
United States – Expectations for the Dallas Federal Reserve Manufacturing Index call for a reading of -9.1 in the month of October following September’s reading of -9.5.