European shares started the week on lower ground as slowing economic growth in Japan raised concerns about the global recovery. Japanese gross domestic production rose by 1.4% in the second quarter on annualized basis missing the forecasts for 2.3% growth. The lack of other economic data has increase the effect from Japan GDP report. As a result, market participants avoided stocks sending major averages lower. The German DAX Index closed the Monday session with 0.50% loss, at 6909.68, the French CAC 40 lost 0.27% to 3426.41, while, the U.K. FTSE 100 dropped by0.25% to 5831.88.
Binary options on U.S. stocks have also suffered some losses due to Japanese data. S&P 500 put an end to its seven day winning streak falling 013% to 1404.11. The blue chip index – Dow Jones Industrial Average, finished the day 0.29% lower at 13174.54, while, NASDAQ Composite managed to close above the par adding 1.6 points to 3022.52.
However, this morning the picture seems more positive as the Asian stocks are trading above Monday’s close. The main driver for this optimism so far are the minutes from the recent Bank of Japan meeting, where few board members said that the central bank should not dismiss any options in its effort to stimulate the economy. Nikkei 225 is trading 0.40% higher 15 minutes before the close bell, while the broader Topix 500 is adding 0.25% to 582.80.
This morning France and Germany announced better-than-expected preliminary GDP results, which send the higher yield assets. Major indices in Europe are expected to open considerably higher, while the U.S. dollar and the Japanese yen are losing ground against the basket of currencies. Germany reported 0.3% growth in its economy for the second quarter, beating the estimates for 0.2% growth, while France avoided expected recession announcing 0.0% change on quarterly basis.
Today, the economic calendar is full of economic events starting with Britain inflation, German economic sentiment survey, Eurozone GDP and U.S. retail sales.
EUR/USD
Binary EUR/USD options moves above the last short range trading between 1.2250-123. For today, the first support is expected at 1.23, while, the intraday resistance is seen at 1.24, followed by the one month top at 1.2445. 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 1.2250 will move the target on 1.2130.
S&P 500
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 down-side first, the support is expected at 1390, followed by 1380 and 1355.
DAX
After the break, above 6900 binary options on DAX are trading in short range below the psychological 700. Today investors should expect new test of the strong resistance at the psychological 7000, considering the strong economic reports from Europe. However,a break above it will move the focus on 7105, which will provide enough space for binary call options. On the opposite direction, the 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.
