On June 14, the Commerce Department announced that US retail sales witnessed a higher-than-expected increase in May, with a rise of 0.5% in comparison with the previous month. The latest data came in as a positive signal that the American economy was gaining steam in spite of a slowdown in job creation, which was reported earlier this month. After this report, the dollar index DXY, which tracks the value of the greenback against its peers, edged up sharply to 94.94, pairing its recent losses.
Meanwhile, according to the Office for National Statistics, the UK Consumer Price Index (CPI) rose at an annual rate of 0.3% in May, staying unchanged from April. After eliminating the volatile food, energy, alcohol and tobacco prices, the core CPI increased 1.2% from one year earlier.
In the Asian trading session, the Chinese’ Yuan stumbled to the lowest level in over five years against the US dollar after the People Bank of China set its official midpoint at 6.6001 – a record low since January 2011. After that, Chinese stocks dropped sharply at Wednesday’s open. The Shanghai Composite Index SSEC was down 1% to 2,814.69 points while the Hang Seng Index HIS lost 1.1% from its last close on Tuesday.
Today, oil prices continued to fall as rising concerns on “Brexit” and an unexpected increase in the US crude stockpiles weighed prices down. The American Petroleum Institute reported that total inventories were at 536.7 million barrels in the week ending on June 10, climbing up 1.2 million barrels while the analyst forecast was for a decline of 2.3 million barrels.
The global benchmark, WTI extended its downtick to $48.20/barrel on Wednesday.
After a significant decline from a three-month high of 0.99547, USDCHF is moving sideways in a narrow range under the 23.6% Fibonacci retracement levels. A low ADX and average RSI levels are unveiling no clear signals on the price direction. The 23.6% fibonacci resistance is expected to remain solid until a real breakout through the level occurs in the market. Once the ceiling at 0.96636 is broken, the 38.2% level is likely to be tested.
Buy Digital Call Option from 0.96636 to 0.97148 valid until 20:00 June 15, 2016
The Euro is in a light up-move against the yen, leading the pair EURJPY to climb back up from the record low of 118.494. RSI (14) is pointing upwards from the threshold of oversold territory, indicating that the bull is stepping in. However, with lower lows, the current bounce back is expected to be a brief consolidation as the trend indicator still suggests a short position.
Buy Digital Put Option from 118.784 to 117.935 valid until 20:00 June 15, 2016
ADX (14) has headed higher to a reading of 28.0037, with DI+ far higher than DI-, implying that the bullish power is quite strong. Though AUDNZD is inching down a little after reaching the firm resistance of 1.05446, the pair is expected to resume its uptick once the current correction comes to an end, thanks to the upward pressure from the two moving averages.
Buy Digital Call Option from 1.05345 to 1.06015 valid until 20:00 June 15, 2016
Lately, the metal has been locked in a range between 2.0305 and 2.0650. Despite moving around the average, RSI (14) is pointing up, showing that the bull is coming in. The two moving averages are getting closer. If the short-term EMA (10) crosses over the long-term EMA (30), and the two lines move under the price chart, COPPER may edge up strongly.
Buy Digital Call Option from 2.0636 to 2.0830 valid until 20:00 June 15, 2016
The Stochastics chart shows that commodity has dived in the overbought area since a while and the %K line (red line) has already reversed, in an attempt to cross the %D line (blue line), hinting a slight bounce back. A smaller-than-average reading of RSI (14) still indicates that the bear is still dominant. A short position is encouraged by the red arrow hanging over the price chart.
Buy Digital Put Option from 48.00 to 47.26 valid until 20:00 June 15, 2016
DAX is currently lingering around 9499.65, failing to break through this level. RSI (14) is beginning to move up, in an attempt to escape oversold territory. For the rest of the day, the price is expected to surge higher, heading to cover the big gap formed two days ago. Thereafter, the index may pull back as signaled by the trend indicator. A long position in the short-term is encouraged.
Buy Digital Call Option from 9580.72 to 9752.54 valid until 20:00 June 15, 2016