European major market averages were under pressure in the middle of the week following worse than expected economic data. Germany’s June industrial production and exports dropped with 0.9% and 1.5% respectively, both missing the economist expectations. Meanwhile Bank of England cut its growth forecast and inflation expectations. On the other hand Rio Tinto and Bankia spurred some positive mood in the commodity and financial sectors. As a result binary DAX index options closed the session almost unchanged erasing the initial loss of 60 points. FTSE 100 has also managed to recover from an early loss, closing the session 4.6 points higher at 5845.92. The French CAC 40 remained under the par through the whole session dropping 0.43% to 3438.26.In Spain binary options on IBEX 35 finished the day 0.84% lower at 7150.20.
In U.S. corporate earnings continue to dictate the sentiment due to lack of economic data. Yesterday the quarterly results were mixed, which left the major indices to be trade in very short range around the par. S&P 500 added less than a point to 1402.22, while the blue chip Dow Jones Industrial Average added 0.05% to 13180.75. On the other hand NASDAQ Composite lost 0.15% closing the session at 3011.25.
This morning Asian stocks are trading higher amid lower inflation results from China and better employment in Australia. China’s CPI is 1.8% in July on annual basis, which is below the previous reading of 2.2%. In the same time industrial production and retail sales rose with slower pace than expected, which spurred speculations for impending government stimulus. In Australia the unemployment rate dropped unexpectedly to 5.2% in July from 5.3% in the previous period. Nikkei 225 closed the session 1.10% higher at 8978.60. Shanghai composite is gaining 0.40% 30 minutes before the close bell, while Hang Seng index is currently trading 0.89% higher at 20241.85.
EUR/USD
Binary EUR/USD options extend the consolidation around 1.24. 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 break below 1.2350 will move the target on 1.2130, but 1.2250 could also cause some support.
S&P 500
The U.S. market indicator remains in positive trend holding above the psychological 1400. In the coming days, attack of the 4 year top at 1422 will provide good trading opportunities for trend following strategies as well as for reversal strategies. On the downside first support is expected at 1390, followed by 1380 and 1355.
DAX
Binary options on DAX continue to climb higher remaining on levels above 6900. Today binary investors should expect new test of the strong resistance at the psychological 7000. However, break above it will move the focus on 7105, which will provide enough space for binary call options. On the opposite direction intraday support is seen at 6900, followed by 6840. Further supports are expected at 6800 and 6550.
Disclaimer:
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.
