FxWirePro: One touch spreads to speculate HY vols on AUD/USD’s relentless downswings

Aussies losing streak has been stronger from mid to hit almost 6 year's lows. On weekly and monthly charts, from last one year the pair has been tumbling non-stop to evidence the huge loses.

Shooting star like candle is occurred on daily charts and the trend on this chart has still been fragile as the RSI (14) is converging downwards with massive price dips. While %D line crossover is still on even after reaching oversold territory on slow stochastic.

Overall, the major trend has been downtrend dominated by the bears with clear volume confirmation.

The implied volatility for near month contracts of AUDUSD pair has been highest in the currency segment and is seen at 12.85%.

We recommend on pure speculation basis buying one touch binary puts in order to extract leverage on extended profitability. By employing At-The-Money binary delta puts one can multiply returns by twice, thrice or even pour returns exponentially. But do remember these are exclusively for speculative basis.

The prime merits of such one touch option are high yields during high volatility plays. Wider spreads indicates lack of liquidity. The spreads for one touch AUD/USD options are constant time and barrier levels. Usually, such binary options for every change in 1 pip the relative change in option price 0.01% or even exponential at high implied volatility times.