Binary options on European stocks rose on Tuesday, following the GDP data from Germany and France. Preliminary report showed that the German economy expand by 0.3% in the second quarter, beating the estimates for 0.2% growth. At the same time, France avoided recession reporting unchanged GDP results for Q2, which again was better than analyst expectations for 0.1% contraction. As a result, DAX Index closed the European session 0.94% higher at 6974.39, CAC 40 gained 0.70% to 345027, FTSE 100 added 0.56% to 5864.78 and the Spanish IBEX 35 advanced by 0.78% to 712480.
In the U.S., the picture remained flat despite the strong retail sales data. Dow Jones Industrial Average finished the day almost unchanged adding 2.7 points to 13177, while S&P 500 remained flat at 1404. NASDAQ Composite dropped 5.5 points or 0.18% to 3016.98. Wall Street traders seem to be on vacation considering that yesterday’s volume was the lowest since 2008 and the volatility index dropped to five year low.
This morning Asian stocks are trading lower amid disappointing corporate results from China and lower consumer confidence from Australia. Nikkei 225 lost 4 points to 8902.12, while the broader Topix 500 is losing 0.28% to 581.24.
Binary EUR/USD options continued to trade in very narrow range. 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.
In the past couple of days the index is trading in very short range between 1395 and 1410. Considering the low volume and volatility numbers, attack of the 4 year top at 1422 will probably remain for the next week. Binary option traders should watch for political statements concerning further stimulus programs, because lately this is the major factor that shakes market averages. On the downside, the first support is expected at 1390, followed by 1380 and 1355, while, on the upside main target is 1422.
After the break above 6900 binary options on DAX are trading in short range below the psychological 7000. In the coming days a break above it will move the focus on 7105, which will provide enough space for binary call options. On the opposite direction intraday, the support is seen at 6900, followed by 6840. Further supports are expected at 6800 and 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.