European shares extended their gains on Monday sending binary options on major market indices to fresh four-month highs. The positive sentiment was supported by European Central Bank bond-buying plan, which is expected to cut the funding price of Spain and Italy. The German DAX Index closed the session 0.77% higher at 6918.72, while, the CAC 40 advanced with 0.81% to 3401.56. Meanwhile the Spanish IBEX 35 reached one-month high gaining 4.41% to 7053.60.
In the U.S., the market indicators posted modest gains amid low volume, following the European news and some better-than-expected earnings results. The NASDAQ Composite outperformed other indices and ended higher by 0.74% at .2989.91. Meanwhile, the blue chip Dow Jones Industrial Average added 0.16% to 13122, while, S&P 500 gained 0.23% to 1394.23. Today the U.S. market will stay away from key economic data. From the earnings calendar MGM and Office Depot will report their results before the open bell, while Walt Disney will announce its quarterly results after the close.
This morning Asian stocks are gaining amid ECB bond-buying plan, which supports Asian exporters’ outlook. Reserve Bank of Australia kept interest rates unchanged at 3.50%, which was in line with the market expectations. Half an hour before the close bell in Japan Nikkei 225 is trading 0.85% higher at 8800.23. Meanwhile, Hang Seng index remains above the psychological 20000 level currently gaining 0.40% to 20076.60.
Binary EUR/USD options consolidate around 1.24 since late Friday. The short term picture is neutral and only a break out from the short range between 1.2350-1.2450 will set a direction for the next couple of days. On the upside, above 1.2450 binary investors should expect resistance far away around the psychological 1.27, which is a good opportunities for call/touch up options. On the opposite direction, a break below 1.2350 will move the target on 1.2130, but 1.2250 could also cause some support.
The U.S. market indicator remains in positive trend heading towards the psychological 1400. A break above this level will put the target on 1422, which is the highest level since May 2008. On the downside, the first support is expected at 1380, followed by 1355 and 1330.
Binary options on DAX continue to climb higher reaching levels above 6900. In the coming sessions investors should expect strong resistance at the key 7000. On the opposite direction correction to at least 6840 should not be excluded considering stochastic oscillator overbought levels. On the downside, lower supports are expected at 6800, followed by 6550.
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.