Markets took a large fall in Friday after the US jobs markets, as reported by the US Labor Department, showed significant weakness after the Non-Farm Payrolls (NFP) report disappointed traders worldwide. Everything from stocks to commodities were hurt by the news that the Non-Farm Payrolls showed an addition of just 115 thousand new jobs in the US market which is down from March’s revised figure of 154,000. March’s employment figures were revised upwards from 120,000, but markets were suffering greatly due to the April figures. It almost seemed that the news from Europe would be forgotten, but as Sarkozy lost the election last night, the fear of the European debt crisis will surely make its mark on today’s trading. Not at all because Sarkozy lost the election to Hollande. Rather what this loss means to the Eurozone.
The fact is, Greece is back in the news due to mounting distaste for the austerity package forced on the country as part of the bailout agreed to. It seems like there is room to ponder a collapse of the eurozone as we know it as Greece is the first candidate to leave the Euro.
This news is likely going to push the EUR even further down today. The forex pair started the day with a huge move downward, falling from 1.3079 to 1.2950 in short order. The currency pair is stable now around the 1.2986 but looks like it will continue down as traders fear a collapse of the EUR as well as Europe as a whole. As such, binary traders should take note and be careful of trading European stocks today. As for the EUR/USD the forex pair is very likely to remain weak for the remainder of the day. Taking DOWN option on a break below 1.29, which is not a significant support, could be a wise move today. Not so much because the 1.29 level is important from a technical standpoint, but rather because the level signifies a break psychologically and could allow for a free fall of the forex pair. We are already at the lowest levels seen in the forex pair since the 25th of January.
Google (GOOG) stock looks ready to fall below the 597 support. The stock reached just above this level in Friday’s trading sessions and closed thereabouts. However, it is very important to note that the stock is in the midst of a head and shoulders pattern and a break below 597 will confirm this. For binary options traders, the pattern has little more significance than the break itself. The reason is that a pattern like head and shoulders simply means that the stock price of GOOG will fall below 597 in the same amount as the height of the head and shoulders, at its highest point. But binary traders don’t care about how far the market goes below a certain point, so long as it closes below it. So taking a DOWN option on GOOG today will be a good idea if the stock breaks below the level. This would be considered a low risk trade by technical analysis.