Best Binary Options Signals For February 3, 2014
Binary options traders had plenty to deal with last week as a deluge of information caused volatility in the financial markets. The S&P 500 index recorded its longest losing streak since 2012 after departing Federal Reserve Governor, Ben Bernanke, signed off with another $10bn cut to monthly asset purchases. There were also earnings surprises from a number of high profile companies with the likes of Apple dropping 8% after hours.
In the end, the Dow Jones Industrial Average finished Friday lower by -0.94% while the Nasdaq declined -0.47% and the S&P 500 fell -0.65%.
It wasn’t all bad news, however, as all three major indices did manage to finish off off their lows and the majority of US companies have still managed to beat earnings expectations this season. The world’s largest drugmaker Pfizer, was one of those that posted strong quarterly results last week, as did Facebook which jumped by 14%.
There will be little respite for traders this week as we will see some big economic events taking place including central bank decisions and non-farm payrolls on Friday.
US non-farm payrolls are expected to come in sharply higher this month at 175k, compared to last months 74k figure. Such a number could give a real boost to stocks but it does leave a fair amount of room for disappointment.
As well as NFPs we will see US ISM manufacturing out on Monday and then a rate decision from the RBA on Monday night/ Tuesday morning. That’s followed by unemployment numbers from New Zealand before more rate decisions from the BOE (Thursday) and ECB (later on Thursday).
USDCAD – DOWN
USDCAD reversed gains on Friday to finish sharply lower as the drop in US equities caused US dollar weakness across the board. As you can see from the chart, technical levels played particularly well and USDCAD reversed off the second resistance before dropping all the way back to the third support.
This morning, USDCAD has opened lower than its pivot once again and looks in store for another volatile day. A glance at the longer term weekly chart indicates that USDCAD is significantly overbought and a decent correction is surely on the cards.
Dow Jones Industrial Average – UP
The longest stock market decline since 2012 has not been particularly severe but it has left stock markets open for another short term rally. The rally may not necessarily take us to new highs but it should be enough to alleviate the short term oversold condition of markets. Traders are in no doubt that we are in a long term secular bull market in equities so will continue to buy dips in the main indices when the opportunity arises. The beginning of the week should offer the best opportunity to do this – before we get near to non-farm payrolls – so binary options traders should look to bet UP until then.
As non-farm payrolls approach, traders will become more cautious, however, a good strong figure, 165k-190k would give stocks a boost, and the US dollar too. Traders will also be keeping an eye on any upward revisions to last month’s weak 74k figure.