European shares fell for first time in three sessions amid worse than expected corporate earnings and lower ratings on Italian banks. As a result FTSE 100 closed the session 0.59% lower at 5629.09, while the French CAC 40 dropped 0.09% to 3176.97. Meanwhile the German DAX index remained above the par gaining 0.18% to 6557.64. Yesterday Moody’s Investors Service cut its long-term rating on 10 Italian banks following its downgrade of Italy’s government bond rating. The move from Moody’s is raising concerns that Italy could follow Spain and soon ask for financial help.
In U.S. binary index options were trading higher on Tuesday, following Fed Chairman Ben Bernanke’s semi-annual monetary policy report. S&P 500 finished the day 0.74% higher at 1363.67, while NASDAQ Composite added 0.45% to 2910.04. The blue chip Dow Jones Industrial Average gained 78.33 points or 0.62% closing the session at 12805.54. The positive wave on Wall Street came after Ben Bernanke told the senators that the central bank is prepared to boost growth if the labor market doesn’t improve. However, Fed Chairman said also that easing tools should not be used lightly, which suggest that another QE will not happen anytime soon.
Today U.K. Office for National Statistics will report jobless claims change in June and the unemployment rate for May. Later in the day binary commodity investors should watch for the U.S. weekly crude oil inventories data.
In the last couple of days binary eur/usd is consolidating in very short range between 1.22-1.23. However the overall picture remains negative and investors should expect new test of the psychological 1.22 with first support around 1.2165. Break below the latter is expected to send 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.
The U.S. market indicator is still in positive trend since June and it needs to break above 1375 in order to extend the movement. Binary investors should expect intraday resistance around 1363, followed by the crucial top at 1375. On the opposite direction, downside movement is expected to meet support in the 1335-1330 zone. Break below the latter will provide good opportunities for “put” options towards the next support at 1310.
Binary DAX options moved above the 38.2% Fibonacci retracements of the 7216-5918 movement, which put the target on the recent top near 6650. Break above the latter will be a good signal for further gains towards 6720, which is 61.8% fibo of the mentioned drop. On the opposite direction binary investors should expect intraday support at 6500, followed by the key 6400.
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.