European binary stock options extended the downside movement for sixth straight sessions, as market participants increase their risk-aversion amid concerns for weaker corporate earnings season. In the past couple of weeks investors’ sentiment is defined mostly by further stimulus expectations and when these expectations become unjustified investors move away from shares towards lower-risk assets. The last disappointment came from Wednesday’s FOMC minutes, where FED officials didn’t take any actions to further quantitative easing. Yesterday the French CAC 40 index closed the session 0.70% lower to 3135.18, while the German DAX lost 0.53% to 6419.35. In U.K. the market benchmark FTSE 100 dropped 0.99% to 5608.25.
U.S. stocks have also fallen on Thursday, following the negative sentiment around the globe. S&P 500 lost 0.50% finishing the day at 1334.76. The blue chip Dow Jones Industrial Average dropped 0.25% to 12573.27, while NASDAQ Composite closed 0.75% lower at 2866.19.
This morning Asian shares rose for first time in seven sessions after China reported the slowest economic expansion in three years. In the second quarter, GDP rose by 7.6% on annual basis, which was below the consensus for 7.7% increase. Market participants react positively on this news because they expect to see more stimulus from the Asian central banks in order to support the economic growth. Nikkei 225 closed the session 0.05% higher at 8724.12, while, the Hang Seng index is gaining 0.30% to 19075, two hours before the close bell.
EUR/USD
The negative picture around the euro remains. Binary option investors should expect new test of the psychological 1.22 with first support around 1.2165. A break below the latter will loosen the price lower towards the key 1.20. On the upside, binary players should expect first intraday resistance at 1.23, followed by 1.2335 and 1.24.
S&P 500
The market indicator remains below 1350 with first support around 1330. A break below the latter will provide good opportunities for “put” options towards the next support at 1310. On the opposite direction, binary investors should expect intraday resistance around 1345, followed by 1363 and the recent high at 1374.
DAX
Binary DAX options hold above 6400, near the 38.2% Fibonacci retracement of the 7216-5918. On the positive side, the first resistance should be expected at 6500, followed by 6650 and 6720 which is 61.8% fibo of the mentioned drop. On the downside, the first support is seen just below 6400, followed by 6300. Binary players should watch for positive reverse around 6400 towards 6500. On the other hand, a strong break below 6400 will be profitable for “put” positions with target on 6300.
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.
