Binary markets traded very quietly during the Asian session today. Yesterday’s report of US GDP didn’t impress the markets by much and the moves were insignificant. EURUSD is currently trading on green territory as it fell from 1.2570 to 1.2524 yesterday. USD is the only one out of the four major currencies that kept moving during the night. After it rallied from 78.47 to 78.78 in the course of several hours, it made a lower high at the night and then broke the low before it at 78.65. Binary US stock index futures are down for the day but not much as Dow is down by 16 points, S&P500 by 3, and Nasdaq100 by 4. Commodity markets remain calm with no significant change during the current session. Binary Gold is up 3 dollars from the opening at 1656, while Binary Crude Oil are exactly at the opening level at 95.15.
Today we have Italian 10-year Bond Auction, which will be a major test for the trust in the Italian government and its financial policy. At 8:30 NY Time the Unemployment Claims in the USA will be announced, which are forecasted to drop mildly below the previous reading at 372K. Today we will episodically see parts of the Jackson Hole symposium, which in addition to the Italian bond auction and the unemployment claims data from the US could provide the news feed needed to bring back volatility to binary markets.
After very sluggish session yesterday the pair moved only 57 pips between high and low and closed on slightly red territory while losing around 0.3%. Now the market is ranging between its yesterday extremes although it’s showing some bullish momentum we cannot call it start of a new major impulse. Until 1.2575 is eventually broken the bull trend will be halted. Closest support zone is 1.2515/1.2525, followed by 1.2485. Exponential moving averages with 20- and 50-bar periods are flat and indicating lack of momentum.
The UK prime binary stock market index yesterday lost 20 basis points yesterday which was no big surprise. The market has been trending down for quite some time, since in the middle of August its bull trend lost momentum and formed double top formation at 5875. The market is expected to continue down to test its previous recent lows at 5738. Since the market already opened below this level, we expect it to be turned into resistance level. If the market manages to keep its bearish momentum it will reach 5666, where a major support level lays.
Binary Gold is falling in the past 3 sessions, while moving in a descending channel. Although yesterday it hit the lower line of the channel no significant bullish reaction occurred. If the market doesn’t succeed to stabilize above 1656 it would test 1652 and probably undershoot the channel line. Market mood remains bearish for now and it will stay like that until eventual break above 1662. This could lead the market to 1672, but most likely today’s trading session will stay more rangy, caught between 1662 and 1652. Binary traders should buy call options near the low of the range and buy put options near the high.