European stocks fell on Friday for second consecutive session as German business confidence declined to its lowest level in more than two years. The German stock index DAX is trading 0.98% lower at 6280.80 one hour before the U.S open bell. In the same time CAC 40 is losing 0.74% to 3091.28, while FTSE 100 is declining with 0.90% to 5517.01. Meanwhile U.S. index futures are trading near the par, after the huge drop from Thursday where S&P 500 lost 2.23% to 1325.51.
Early this morning German IFO Business climate index for June fell to 105.3, which was below the consensus for 105.6. The Expectations index was also below the forecasts dropping to 97.3, compared to the economists’ prediction for decline to 99.8.
Financial stocks were among the biggest losers on Thursday after Moody’s cut the ratings of 15 global banks. Today binary option speculators could profit from potential rebound among banks stocks.
Binary EUR/USD fell sharply below 1.2700, receiving support around 1.2520. Further decline below 1.25 could meet short-term support at 1.2440 before the bottom at 1.2286. On the opposite direction binary option investors should expect first resistance at 1.2745, followed by 1.2820.
Binary S&P 500 lost more than 2% after it reached the resistance level at 1360. Investors could continue to take profits from buying “put” options with first support seen around 1310. Break below this level will move the target further towards the recent low at 1266.On the upside 1360 remains as key resistance. Break above it is expected to send the index to 1400.
The intraday picture around DAX remains unchanged. Expected correction occurred after the index has reached key resistance at 6445. Intraday support remains around 6250, followed by the last week lows near 6100. On the opposite direction break above 6445 will move the target on 6660. In the next few sessions binary option investors should expect consolidation around 6300, before new upside movement.
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.