Binary Options Analysis for November 3rd 2015
Market Recap & Outlook:
The Eurozone released a better-than-expected Markit Manufacturing PMI for October in its final revision as this index was revised higher to a level of 52.3. Expectations called for no change from the initially reported figure of 52.0. Italy and Germany led the upward revision while France was revised lower. The Euro was able to build on its most recent gains which were additionally fueled by comments out of the European Central Bank (ECB) that its quantitative easing (QE) program may be suspended in December.
Switzerland reported its October SVME-Purchasing Managers Index which rose to 50.7. This beat economists’ expectations for an increase to 50.1 from September’s contractionary reading of 49.5. In addition, Swiss retail sales for September rose by 0.1% month-over-month and 0.2% year-over-year. This represented a slowdown over the 0.5% increase reported in August month-over-month, but a turnaround from the 0.6% contraction year-over-year.
The Institute of Supply Management (ISM) New York Index for October as well as the IBD/TIPP Economic Optimism Index for November out of the United States are both favored to show an economy in contraction with readings of 46.0 and 47.4 respectively. This would represent a slowdown in the rate of contraction over the previous report’s level of 44.5 and 47.3. Today’s top binary options forecast show an increase in put options for the US currency.
Today’s Binary Option Trading Recommendations Overview:
• EUR/USD – Binary Call Option
• EUR/GBP – Binary Call Option
• USD/CHF – Binary Put Option
• Silver – Binary Call Option
• NASDAQ 100 – Binary Put Option
Currency Pairs on today’s Radar Screen:
EUR/USD – The EUR/USD reversed direction after recording its intra-day low of 1.0897 on October 28th 2015 . The 50 Day Moving Average (DMA) is moving higher, but remains below the descending 200 DMA. The Accelerator Oscillator (AC) favors more upside as positive pressure is accumulating while the Relative Strength Index (RSI) is trading in neutral territory following the move lower from extreme overbought conditions.
Today’s Binary Options Trading Strategy: Call Option
Price action is currently trading above of its horizontal support level. The EUR/USD is anticipated to reverse back into its horizontal resistance level. Binary option traders are advised to seek binary call options in the EUR/USD currency pair on dips below 1.1030 on the H1 Hourly Chart. The upside potential for this binary call option is 315 pips to 1.1345 while the downside potential is 130 pips to 1.0900. This results in a risk/reward ratio of 2.42.
EUR/GBP – The EUR/GBP found support after dropping into its horizontal support level. The descending 50 DMA continues to trade below the descending 200 DMA. The AC points towards a build-up in positive momentum suggesting more upside potential in this currency pair. The RSI is trading in neutral conditions as a result of the bounce higher from oversold territory which added to the positive momentum build-up.
Today’s Binary Options Trading Strategy: Call Option
Price action is now trading above of its horizontal support level, but below of its 50 DMA. The EUR/GBP is expected to accelerate back into its horizontal resistance level. Binary option traders are advised to seek binary call options in the EUR/GBP currency pair on dips below 0.7160 on the H1 Hourly Chart. The upside potential for this binary call option is 190 pips to 0.7350 while the downside potential is 50 pips to 0.7110. This results in a risk/reward ratio of 3.80.
USD/CHF – The USD/CHF is faced with a momentum change from positive to negative following the breakdown below its horizontal resistance level. The 50 DMA is moving lower and narrowing the gap to the 200 DMA which is drifting to the upside. The AC confirms the collapse in positive pressure as the RSI is trading in neutral territory after descending from extreme overbought conditions; a drop into extreme oversold levels is favored.
Today’s Binary Options Trading Strategy: Put Option
Price action is currently trading below its horizontal resistance level as negative momentum is on the rise. The USD/CHF is anticipated to complete a breakdown below its 200 DMA from where more downside is possible. Binary option traders are advised to seek binary put options in the USD/CHF currency pair on rallies above 0.9850 on the H1 Hourly Chart. The downside potential for this binary put option is 270 pips to 0.9580 while the upside potential is 105 pips to 0.9955. This results in a risk/reward ratio of 2.57.
Today’s Commodity Trade
Silver – Silver bounced higher from its intra-day low of 15.263 which was reached yesterday on October 2nd 2015 . The descending 50 DMA crossed below the descending 200 DMA. The AC shows the formation of a positive divergence and the RSI is trading in neutral conditions following the spike higher from extreme oversold territory. Where can I trade binary options? You can trade binary options from inside your funded, live GOptions trading account.
Today’s Binary Options Trading Strategy: Call Option
Price action is now trading above of its horizontal support level. Silver is expected to drift into its 200 DMA from where a breakout is anticipated. Binary option traders are advised to seek binary call options in Silver on dips below 15.500 on the H1 Hourly Chart. The upside potential for this binary call option is 85 pips to 16.350 while the downside potential is 25 pips to 15.250. This results in a risk/reward ratio of 3.40.
Today’s Equity Index Recommendation
NASDAQ 100 – The NASDAQ 100 has recovered from its breakdown below its horizontal resistance level and is trading inside of it from where a corrective phase is expected. The 50 DMA is trending sideways, but maintains its positions above the 200 DMA which continues to move to the upside. The AC has formed a negative divergence in this equity index. The RSI is trading in overbought territory as a result of the breakdown from extreme overbought conditions.
Today’s Binary Options Trading Strategy: Put Option
Price action is currently trading inside of its horizontal resistance level with a build-up in negative pressure. The NASDAQ 100 is anticipated to enter a counter-trend move to the downside. Binary option traders are advised to seek binary put options in the NASDAQ 100 equity index on rallies above 4,685.00 on the H1 Hourly Chart. The downside potential for this binary put option is 26,500 pips to 4,420.00 while the upside potential is 11,500 pips to 4,800.00. This results in a risk/reward ratio of 2.30.
Key Fundamental Data:
South Korea – The October consumer price index (CPI) clocked in at 0.0% month-over month and rose by 0.9% year-over-year which came in above expectations for a contraction of 0.2% and an increase of 0.8%. Today’s data also came in above the previous month’s contraction of 0.1% and increase of 0.8% respectively.
Turkey – The Turkish CPI for October is favored to rise by 1.4% month-over-month and by 7.8% year-over-year after being reported at an increase of 0.9% and 8.0% in September. Expectations for the producer price index (PPI) call for an increase of 1.3% month-over-month and 7.0% year-over-year which would represent a slowdown over the previous month’s increase of 1.5% and 6.9%.
Eurozone – Economists anticipate an increase of 70,300 for the October Spanish unemployment change following September’s increase of 26,100.
Hong Kong – Expectations for September retail sales call for an increase of 3.2% year-over-year after decreasing by 0.2% in August.
Eurozone – Spanish consumer confidence is called down by 1.3 points in October to 104.8 from September’s reading of 106.1.
United Kingdom – Economists anticipate a decrease of 1.1 points in the Markit/CIPS Construction PMI for October to 58.8 following the previous month’s level of 59.9.
Eurozone – Expectations for the unemployment rate out of Ireland favor a decrease to 9.3% in October from September’s unemployment rate of 9.4%.
Brazil – The Markit Manufacturing PMI for October is favored to come in at 46.5 after being reported at 47.0 in September.
Eurozone – Economists anticipate a decrease of 0.5 points in Irish consumer confidence to 100.1 following the previous month’s level of 100.6.
United States – Factory orders for September are expected to post a contraction of 0.9% and factory orders excluding transportation are set to decrease by 0.4%. This would mark a slowdown in the rate of contraction as compared to August’s decrease of 1.7% and 0.8% respectively.
Mexico – Expectations for the Markit Manufacturing PMI for October call for a reading of 51.9 after being reported at 52.1 in the previous month.