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Sep 29, 2016

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Market Analysis

Home » Latest News » Daily report on June 28, 2016

Daily report on June 28, 2016

Posted by Option_Banque in Latest News - June 28th, 2016 4:04 pm GMT

On Tuesday, Sterling gained for the first time since Britain’s vote to exit from the European Union, as the recovery in investors’ appetite for higher-yielding assets curbed the demand for US dollar, safe-haven gold and Japanese Yen.

The pound rose against its major counterparts, last trading at $1.3318 after hitting the 30-year low of $1.31129 on Monday. The US dollar index, measuring the strength of the greenback versus the basket of major currencies, dropped for the first time since the record market rout on Friday to 96.07, down 0.32% compared with the last settlement. Whereas, the Yen fell against most of its rivals, trading at 102.063JPY/USD after rocketing to 98.678JPY/USD at high speed.

Asian stocks trimmed their losses today on expectations that policy makers would take actions to stabilize financial markets after Brexit related panic. The MSCI Asia Pacific Index lost 0.4% to 125.23 after being down up to 1.2% earlier. Japan’s Topic index has pared its earlier declines of as much as 2.2% upon speculation that the Bank of Japan (BOJ) could intensify stimulus measures.

Gold reversed into a bearish tone after two days of reigning at the top – as investors sought safe-haven assets following the UK’s unexpected vote to leave the EU. The commodity was trading at $1317.22/oz, down more than 3% from yesterday’s high of $1358.24.

Oil prices inched up in early trading in Asia as a looming strike in Norway is likely to reduce output from Europe’s biggest oil producer. Around 755 oil workers could go on strike starting Saturday if a new wage deal is not reached before Friday. US West Texas Immediate crude was trading at $47.19 per barrel, adding 1.15% compared with the last settlement, while Brent crude was up 0.87% to around $48.34 per barrel.

Technicals

EURUSD
EURUSD is currently moving sideways, in a wide range below the 23.6% mark of the Fibonacci retracement from 1.09685 to 1.10827. RSI (14) is up to 43.32, even though that is not enough to confirm a trend change into an up move. It does however indicate strengthening bullish momentum. The pair is anticipated to fall back after a test of the firm resistance at 1.10714.

Trade suggestion

Buy Digital Put Option from 1.10714 to 1.09896 valid until 20:00 June 30, 2016

GBPJPY
After testing the three-and-half year low of 133.194 for the second time, the British pound is moving up slightly against the safe-haven Japanese yen. ADX (14) has lowered to 36.4574, combined with shrinking distance between DI- and DI+. This indicates that the sellers are getting exhausted. Longs are encouraged in the short-term.

Trade suggestion

Buy Digital Call Option from 136.736 to 140.126 valid until 20:00 June 30, 2016

USDCAD
The level of 1.31104 is currently acting as firm resistance for prices as the pair failed to close far above this mark for several weeks. RSI (14) is turning downwards from the overbought point, implying that bears may attempt to overshadow the market. The support of 1.29647 is expected to be tested before any rise.

Trade suggestion

Buy Digital Call Option from 1.29739 to 1.30345 valid until 20:00 June 30, 2016

GOLD
On June 14th, GOLD hit a record high around the 1358 level, as a fallout of the shock from the UK referendum’s results. However, the bull has weakened a little bit as the precious metal is fluctuating in an uncertain fashion since. RSI (14) has managed to escape from overbought territory. However, the price is expected to climb after consolidating for some time, as signaled by the trend indicator and two MA’s

Trade suggestion

Buy Digital Call Option from 1324.36 to 1344.95 valid until 18:00 June 30, 2016

WTI
WTI is extending its rise after hitting a six-week low of 46.04 on Monday. RSI (14) is edging up, but not crossing over the average level yet, indicating that the bear market is still relatively strong. The 28.2% Fibonacci has been a solid resistance lately and is expected to contain the price from surging higher. Short positions for the long-term are encouraged by the trend indicator

Trade suggestion

Buy Digital Put Option from 47.60 to 46.30 valid until 20:00 June 30, 2016

SP500
Creating a very big gap-down from a high of 2112.10 on Friday, the SP 500 is on course to plunge after failing to cover that gap. The two moving averages crossed below the price chart, casting a shadow on the index. The SP500 is expected to continue remaining under pressure from the two SMAs above. It may head down to break through the 38.2% level of Fibonacci retracement. More declines are awaited.

Trade suggestion

Buy Digital Put Option from 1995.56 to 1980.31 valid until 20:00 June 30, 2016

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