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Market Analysis

Home » Latest News » Daily Report on June 01, 2016

Daily Report on June 01, 2016

Posted by Option_Banque in Latest News - June 1st, 2016 10:25 am GMT

The US dollar is moving in an unclear fashion due to mixed data on economic growth on Tuesday. Yesterday, the Commerce Department reported that consumer spending in April advanced 1.0%. The latest data beat economists’ expectation of a 0.7% increase, and recorded the largest jump since August 2009.
Meanwhile, a monthly survey on economic conditions by the Conference Board, reported that American’s confidence in the economic situation dipped further this month, coming in at 92.6 points, compared with the reading of 94.7 in April.
Data from Statistics Canada on Monday reported that the country’s economy is losing its steam as the real gross domestic product (GDP) in March grew less than expected, contracting 0.2% in comparison with a decline of 0.1% in the preceding month. For the first quarter in 2016, the economy registered an annual growth rate of 2.4%, while analysts had expected an increase of 2.9%.
Late yesterday, the China Federation of Logistics and Purchasing reported its official PMI data for May. According to the report, the non-manufacturing PMI inched down a little from 53.5 in the April to 53.1 last month, while the index for the manufacturing sector remained unchanged at 50.1.
In the Asian trading session on Wednesday, oil prices witnessed a slump due to rising production from major Middle East exporters. Slower growth in China is also weighing on global oil demand. WTI slid to $48.82 per barrel, down 0.4% from the close price on Tuesday.

Technicals

USDJPY

Fig. USDJPY H4 Technical Chart
After dropping significantly from around 111.878 a month ago, USDJPY has gradually recovered as seen in the green trend indicator’s appearance below the price. The bull still seems dominant versus the bear with RSI staying above level 50 and pointing up to the overbought zone. The price is anticipated to move sideways around 110.680 before resuming its up-move, retesting the resistance level at 111.878.

Trade suggestion

Buy Digital Call Option from 110.305 to 111.886 valid until 20:00 June 3, 2016

EURGBP

Fig. EURGBP H4 Technical Chart
EURGBP has retreated from the resistance at 0.76900 to 0.76758 despite the support of the two moving averages below. Bearish positions are encouraged with the red parabolics sar band applying downward pressure on the price. RSI (14) is lingering around 59 and pointing down, suggesting a down-move. The price is supposed to retest the support level at 0.76097, formed on May 24.

Trade suggestion

Buy Digital Put Option from 0.76990 to 0.76097 valid until 20:00 June 3, 2016

CADCHF

Fig. CADCHF H4 Technical Chart
CADCHF has begun its bullish trend as indicated by the DI+ (green line) crossing up above the DI- (red line), although the signal trend indicator suggests short positions. The pair is hovering around the zone of Fibonacci retracement 61.8%, and is expected to continue moving up and hit the resistance zone at 0.77355. After that, the price is likely to reverse into a downtrend.

Trade suggestion

Buy Digital Call Option from 0.76152 to 0.77355 valid until 20:00 June 3, 2016

GOLD

Fig. GOLD H4 Technical Chart
GOLD has fallen continuously since the beginning of May due to the downward pressure from a stronger dollar. The commodity is in a downtrend with heavy pressure from the parabolics band above. RSI lingers around level 45 and points to the oversold zone, suggesting a strongly bearish market. The price is expected to hit the support area at 1199.05, the lowest level in more than 3 months.

Trade suggestion

Buy Digital Put Option from 1220.04 to 1199.05 valid until 20:00 June 3, 2016

BRENT

Fig. BRENT H4 Technical Chart
BRENT has been moving between the range of 48.86 and 50.94 for more than a week with the current price at 49.49. The commodity is under pressure from the EMA 10 and EMA 30 above, along with RSI pointing to the oversold area, suggesting a bearish market. The price is anticipated to hit the support level at 48.86 and may then bounce back as the signal trend indicator implies long positions.

Trade suggestion

Buy Digital Put Option from 49.47 to 48.86 valid until 20:00 June 3, 2016

FTSE

Fig. FTSE H4 Technical Chart
FTSE has moved up from around 6193.4 to as high as 6208.0. The signal trend indicator is suggesting long positions with support from the parabolics band below. RSI is above level 50 and pointing up, indicating a bullish market. With the support from the moving averages below, the price is anticipated to hit the two-month high at 6277.6.

Trade suggestion

Buy Digital Call Option from 6193.4 to 6277.6 valid until 20:00 June 3, 2016

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