Binary DAX30 rallied today by the determination of the European Commission to grant a new package of aid for Spain. The Spanish budget targets will be extended and the financial assistance for the bank system is under way. The deadline for a correction of the excessive deficit is prolonged by one year to 2014. The binary traders were buoyed by the encouraging measures and bid the European binary markets.
Binary DAX30 started the day on a lower note losing almost 1% in the first hour of trading. However, the positive news manage to give enough strength to the binary options to reverse the negative beginning and to urge the binary traders to close their binary put options and switch to binary call options.
The binary index has tested an important support reaching 6365 points. It represents 50% of retracement from the wave 6100-6630 points. The upside move might have occurred even without being backed by the release of the news. However, the extent of the upside move could be different.
DAX30 binary options managed to break above 5 and 9 exponential moving averages. It is a typical trend reversal signal. They are headed to test EMA200. It is the final frontier before pushing further higher. As it is well-known the bears live below the aforementioned level, while the bulls live above it. Should the binary traders realize that the binary instrument has not enough power to break above the significant resistance they should close their call options and binary put options.
The information in this 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.