Binary options on DAX fell by some 1.92%, with closing underlying assets prices at 6’410.11. Binary traders have been mainly buyers on binary put options on the index after reading a disappointing U.S jobs data, which bring worries about the global growth on Friday’s trading session. The DAX could continue to edge lower on actual levels and binary traders could eyes for testing support over next sessions.
Recently binary traders pushed DAX prices out of the downtrend channel clearly defined and have drawn a new small uptrend channel. After reaching the upper line resistance of the channel at 6’641.36, the DAX could face to test the 38.2% Fibonacci support retracement situated at 6’342.94. A break of those levels could accelerate the fall for a test of the MA200 line support at 6’281.95, followed by a test of the lower line of the channel at 6’191.56. On the upside view, only a break and clove above 6’518.20 area could accelerate the rise for a retest of the upper line of the channel resistance, situated at 6’646.17.
The U.S. economy added 80,000 jobs in June, falling short of forecasts for a rise of 100,000, which stimulates binary traders to buy binary put options on the DAX index. Also, it put most of European markets under pressures in the late trading session. Spain’s stock tumbled some 3.1% after 10-year government bond flirted with the 7% mark, trading once again. Earlier in the day binary traders have been concerned about the IMF director, Christine Lagarde who said that the global growth outlook is getting more worrisome for the time being. Adding up the the worried situation is not only in the U.S and Europe but with the emerging markets as well.
Binary traders will still look closely the pair EUR/USD, which extended losses after breaking the important support levels at 1.2300 areas and could continue to weigh on European stock markets.
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.