Markets Recover From Over Sold Conditions

Morning Report: 08.30 London

• This morning, the S&P 500 is back on the rise after a spectacular over sold bounce yesterday. The move brings the S&P 500 back above the 100 period moving average – a level that has acted as strong support for some time.

• The dollar index continues to decline ahead of US unemployment claims today.

• The Australian dollar is back on the rise as the 94.50 level holds as support. Australian employment data came in well above expectations.

• The New Zealand dollar is struggling though, with the NZD/USD continuing its downswing.

• The yen pairs are generally on the rise after heavy selling in the USD/JPY yesterday.

                                                                                                                                                                                                                              
Coming up today:

• Coming up today we have US retail sales and unemployment claims at 13.30. This is followed by business inventories at 15.00.

• At 16.15 BOC governor Poloz speaks.

Trade Idea:

The NZD/USD has continued its descent despite ongoing dollar weakness. Despite the Aussie strength today, there could be further downside going forward.

                                  
             
A good way to play this is a LOWER trade predicting that the NZD/USD will close below 0.6950 in 8 days time for a potential return of 149%.

Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

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