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By: Adam Stone
June 9th 2014 6:05am GMT, London UK

This past Friday, binary options traders witnessed the incredible power of the NFP (non-farm payrolls report) which sent US stock prices to yet new record highs. The release of the NFP was somewhat difficult to decipher initially as the actual result, 217k new jobs created in the US economy, was just about the exact expected result but also well short of the result from last month. Most would think that such a result would send markets lower or at least leave them unchanged. Alas, quiet was not to be and binary options traders got a glimpse of just what a single number can do to the financial markets.

US stock indices closed the day on the news well higher and in record territory again. The S&P closed the session up 0.46% to 1949 and analysts are already predicting a close of 2014 near the 2100 level. Fort short term binary options traders, such predictions carry little weight and the immediate moves like those seen on Friday are what rule the roost. Volume on the S&P shot to its highest level for the month and according to the GOptions dealing room, the increase was tallied at over 40% higher than any normal day of trading, 24% higher than on any break seen in 2014, and 27% higher than an NFP release in the last 1.5 years.

The unemployment rate held steady at a 5-1/2 year low of 6.3 percent which was slightly better than the 6.4% most expected. But it’s important to note that this was sort of a hedge consensus prediction. Most analyst feared that the NFP would disappoint and possibly drop more than the 217k we actually saw. A lower figure would have caused an increase in the unemployment figures. As such, an in-line figure further pushed the equity markets.

Earlier this morning, asian equities reached their highest levels in nearly three years based mostly on the results from Friday. It looks as though the world is still taking its momentum driving cues from the US economy.

EURUSD with binary options 9-6-2014

The dollar, meanwhile, didn’t fair quite as well and is now trading near 1.3643, which puts the USD down from the 1.3620 seen right after the release of the NFP. Today, binary options traders will probably revert to range trading the EUR/USD between the resistance at 1.3650 and the support at 1.3590. The support level here is of critical importance seeing as how a break and thus a strengthening of the USD, will be in line with expectations considering the rise of the US equity markets, the news from Friday, and the higher close this morning in the Asian markets. A reverse of trend and a return to prominence of the USD will be the direction we will follow for the day as a strengthening of the EUR looks to be limited by a lack of news today.

Binary options traders will do well to keep a close eye of the supports and resistances mentioned above today. Any break will usher in a mad rush into the markets and considerable follow-through will be expected.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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