Binary options on FTSE100 fell by some 0.62% on Monday’s trading session, with closing underlying assets prices at 5’627.33. Binary traders kept buying binary put options on the index as worries on global growth still weigh. At the current levels the FTSE100 could continue to slide for a test for lower support area.
During late may’s trading session, the FTSE100 reached the 61.8% Fibonacci retracement support levels and binary traders started to buy binary call options on the index and pushed prices inside an uptrend channel. Last week after reaching Bollinger line resistance situated at 5’726.48, binary traders have begun to buy binary put options with a slide, which could continue over the next session for a test of the MA200 line support at 5’584.98. A break from those levels could push prices over the 38.2% Fibonacci retracement main support at 5’551.02. On the upside view, a break of 5’648.59 resistance would confirm the uptrend trend for an objective situated at 5’762.93.
On yesterday’s trading session, binary traders have been concerned over the most of the European stocks, after the finance ministers meeting in Brussels bring more worries in the terms of the Spanish bailout deal could be less favorable than initially proposed at the EU summit. Finance ministers plan to give Spain more time to meet deficit targets in exchange for more savings measures.
Binary traders are still concerned the decisions on banking supervision, bailout money, aid to Spain and Cyprus and whether Greece are likely to take months to finalize. During yesterday’s trading session the yield on Spain’s 10 year government bonds reached 7.11%, widely unsustainable for Spain. Binary traders will keep watching the pair EUR/USD, which could continue to weigh on the market. Even Draghi said that the summit sent an important message to leaders who have a long-term vision for the shared currency. That message is centered on the idea that the euro “is here to stay and the euro area will take necessary steps to ensure that,” he said.
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.