A continuously variable automatic transmission having a direction selection mechanism with both friction and binary torque transmitting devices. The transmission includes a torque converter which drives a ring gear of a planetary gear assembly. The sun gear of the planetary assembly drives the input of a variable ratio device. In one embodiment, the friction brake is disposed between a planetary gear carrier and a stationary housing or ground and is engaged to provide reverse direction of travel. The binary clutch is disposed between the ring gear and the planet carrier and, when engaged, locks the planetary gear assembly and provides forward direction of travel. In other embodiments, a binary brake is disposed between the planetary gear carrier and the housing and is engaged to provide reverse travel and a friction clutch is disposed between the ring gear and the planet carrier and, when engaged, locks the planetary assembly and provides forward travel.