The European shares managed to recover after the early losses. The German DAX index is trading 0.18% higher at 6404.54 an hour before the U.S. open bell. At the same time, CAC 40 is gaining 0.25% to 3134.40, while the FTSE 100 is losing 0.32% to 5604.34.
The initial drop was caused by poor economic results from China and Europe. HSBC manufacturing PMI survey in China fell for an eighth straight month in June on weaker demand for exports. In Germany, the private sector shrank in June for second month in a row, with manufacturing activity hitting a three-year low.
Yesterday, Ben Bernanke said that Fed will extend its bond-buying program called “Operation Twist”, rather than further quantitative easing. The announcement came after the central bank lowered its economic growth and employment forecasts. As a result major indices fell for first time in five sessions.
Today S&P 500 futures are mixed expecting weekly unemployment claims, Philadelphia Fed manufacturing index and existing home sales data.
EUR/USD
Binary EUR/USD consolidates near 1.2700. The short-term target remains at 1.2745 and break above it is expected to move the pair higher towards 1.2820. On the downside first support is seen at 1.2550, followed by 1.2440. On H4 chart the price moved above the 200-period SMA which is considered as positive signal.
S&P 500
Binary S&P 500 failed to break above the resistance level at 1360. In the coming session if economic data is inline or better than the consensus, market participants should expected new test of the crucial resistance. Nevertheless break above it will move the index higher with target on 1422. On the opposite direction first support is expected near the previous resistance at 1335, followed by the psychological 1300.
DAX
The intraday picture around DAX remains unchanged. Binary options traders should expect downside correction as the index is approaching the crucial resistance at 6445 and oscillators are in overbought levels. Intraday support remains at 6230, followed by the last week lows near 6100. On the opposite direction break above 6445 will move the target on 6660.
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.
