The major European indices rose to their highest levels for the past five months on better than expected economic data. In U.K, July retail sales advanced with 0.3% from the previous month, beating the estimates for 0.1% decrease. Overseas building permits in U.S. increased to 812k during July, which was better than expectations for expand to 769k. Meanwhile Eurozone inflation data was in consensus with the forecasts. July CPI shrank with 0.5% on a monthly basis and remained flat at 2.4% on annual basis. As a result, binary options on DAX index advanced with 0.71% to 6996.29. The French CAC 40 gained 0.91% to 3480.49, U.K. FTSE 100 remained flat at 5834.51and the Spanish IBEX35 explode with 4.05% gain to 7417.30.
The positive mood was easily shifted on Wall Street, where the major averages closed the session just below their daily highs. S&P 500 advanced with 0.71% to 1415, Dow Jones Industrial Average added 0.65% to 13255, while NASDAQ Composite closed the session 1.04% higher at 3062.39.
This morning the Asian stock markets are mostly positive following the sentiment from Europe and U.S. One hour before the close bell Nikkei 225 and TOPIX 500 are both trading 0.78% higher to 9164.05 and 595.32, respectively.
EUR/USD
Binary EUR/USD options continued to trade in very narrow range. Today, the firs support remains at 1.2250, while intraday resistance is seen around 1.2350. A break above the latter will move the target on 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
The broad index has reached new fresh four month high at 1417. Today, market participants should expect attack of the 4 year top at 1422. 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
Yesterday, the German index tested the psychological level at 7000. Today, binary option investors should watch for reversal below 7000 or further advance towards 7105. On the on the downside, 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.
