Binary options on oil eased mildly off session’s highs following higher than expected US crude inventories figures. The binary commodity pushed earlier past $90 a barrel, buoyed by bold speech from ECB’s president Mario Draghi after said that he will do whatever it takes to preserve the Euro.
The binary risk markets were given a strong boost this Thursday from several resources. Firstly, the mentioned comments from European Central Bank eased tensions between global binary investors. The impact was seen clearly in Europe’s sovereign debt markets with the Spanish 10 year yield back below 7% level at 6.971%, from a session high of 7.38% and after jumped to record high of 7.751% yesterday. In addition, Italian 10 year yield dropped to 6.038%. Binary European indices also closed on decent gains with FTSE up 0.95%, DAX up 2.75% and France’s CAC 40 up 4.07%.
Adding to the bullish sentiment, U.S. durable goods orders came higher than anticipated by 1.6% in June and the weekly change of initial jobless claims showed impressive improvement to 353k last week.
In general, Thursday’s developments cooled gloomy environment somewhat after risk-off trades kept their grip on the market in the week. At least, Draghi’s positive remarks and upbeat American data weakened the US dollar which usually benefits binary oil and other dollar-dominated commodities, as it makes them cheaper for buyers holding other currencies.
On the opposite side, the Energy Information Administration said that stockpiles climbed 2.7 million barrels. Inventories were forecast to decrease -0.1 million barrels. The data wasn’t great at all but at least did not stoke a panic. Therefore binary buyers preferred to book some profits came off initial spike and await the final impact of ECB response as some binary options analysts argue that it would offer support only in the near-term.
Technically, the daily chart is showing two moving averages drawing the main barriers of the recent trading range. The 20 DMA is serving as a solid support since early July, and after contained this week’s decline it should act to keep upside outlook protected by halting any deeper pullbacks could target its current levels around $87.70. On the other hand, the 100 DMA managed to cap the binary asset’s strength earlier in the week at $93.21. The latter average currently quoting around $92. Hence binary bullish traders should be cautious at these prices and conservative investors might prefer to see a sustained break above the mentioned mark followed by taking out recent top and preferably to breach above $93.80 (Fib 50% of broad fall).
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.