In the middle of the week, U.S. binary stock options were mixed following key economic reports. July Consumer Price Index remained flat on monthly basis missing the expectations for 0.2% increase. Meanwhile, Empire manufacturing survey came negative at -5.85, which was worse than expectations for 7.00. On the other hand, the U.S. industrial production in July increased by 0.6%, beating the forecasts for 0.5% expansion. As a result, the major market averages started the day on a down note before staging a slow climb towards session highs. S&P 500 closed 1.6 points higher at 1405.53, while, Dow Jones Industrial Average dropped 7.3 points to 13169.89. Meanwhile, NASDAQ Composite gained 0.46% to 3030.93 amid strong performance in the tech sector.
In U.K. the market barometer FTSE 100 lost 0.54% to 5833.04, despite the positive employment data. Jobless claims unexpectedly fell in July and the unemployment rate dropped to its lowest in a year as the Olympic Games created jobs. Today, Britain will report July retail sales, which could also surprise the market due to the Olympic Games.
This morning the Asian markets are on the positive as Chinese Premier Wen Jiabao said that easing inflation is giving more room to adjust monetary policy, which is interpret as signal for more stimulus. Binary options on Japanese indices are trading considerably higher with Nikkei 225 gaining 1.88% to 9092.10 and Topix 500 advancing with 1.54% to 590.20 10 minutes before the close bell.
EUR/USD
Binary EUR/USD options continued to trade in very narrow range. For today firs support is expected at 1.2250, while the intraday resistance remains at 1.2350, followed by 1.24 and 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
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.
DAX
After the break above 6900, binary options on DAX are trading in short range below the psychological 7000. In the coming days 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.
