Binary Trading Review For September 11, 2013

Binary Trading Review For September 11, 2013

Risk events continue to take the back seat in global markets as the stock market continues to climb even against the worries of Syrian conflict, Fed tapering and US debt negotiations.

The Dow Jones Industrial Average finished 127 points higher yesterday to close just shy of 15,200. Meanwhile the S&P 500 advanced by 12 points (0.73%) and gains were also seen in the Nasdaq, in Europe and in Asia.

With conflict in the Middle East, fears over Fed tapering, concern over US debt and earnings that have not exactly beaten any records, its clear that global growth is the big trump card for stocks. Indeed, good economic releases out of China and Japan have given traders additional confidence and as emerging markets stabilize, more inflows have come into the stock market.

Not only that, but the recent spike up in US Treasury yields has seen bond investors looking for somewhere else to park their money, and it looks like stocks are the main benefactor at the moment.

In currencies meanwhile, the stabilizing of emerging markets has led to advances for the likes of EURUSD, GBPUSD and AUDUSD as central banks are no longer desperate to sell these pairs to gain US dollars. This is has been bad news for euro bears, however, it may not be long before that particular trend continues.  This binary trading review begins with oil today.

Oil – DOWN

Unsurprisingly, oil took a bid last week on possible Syrian conflict, however, the commodity has dropped back somewhat as those fears have died down.

Yesterday, light crude dropped fairly heavily with the market hitting the second support level before the close. Today, however, it is marginally up and is currently pushing towards today’s pivot. This could be an opportunity for binary options traders to bet DOWN since it looks increasingly likely that there will be no action taken with Syria (military action anyway).

Even when military action looked a possibility, oil didn’t exactly hit the roof so it’s likely that the market is just a little oversold at these levels. Binary traders should look to bet down until the market has reached the 106 area.

oil trading chart

EURUSD

EURUSD has taken a bid of late as problems in emerging markets led central banks to gather up US dollars. Those fears have subsided some what now and there is every chance that EURUSD will fall today. Already, EURUSD looks to be losing momentum and the currency struggled to make it up to any resistance yesterday.

Today, the currency is hovering around the pivot, again struggling to make any headway and it looks like a good opportunity for binary options traders to bet DOWN. There is little on the calendar in US markets this week, but the ECB monthly report tomorrow could be a possible catalyst for euro weakness. We saw in the last ECB meeting Mario Draghi take a more dovish stance and that change in rhetoric is likely to be exemplified again in Thursday’s monthly release.

Traders won’t want to be long heading into the release, EURUSD is likely to be lower than here by Friday.

eurusd trading chart