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Market Analysis

Home » Latest News » Daily Report on May 18, 2016

Daily Report on May 18, 2016

Posted by Option_Banque in Latest News - May 19th, 2016 3:34 am GMT

According to the Labor Department report yesterday, US Consumer price index (CPI) for April recorded the biggest gain in over three years, advancing 0.4%, compared with an increase of 0.1% in the month before. The core CPI, which excludes food and energy, did meet economists’ forecast by rising 0.2% last month. All data is on a seasonally adjusted basis.
Data from Statistics Canada released on May 17 showed that turnover from manufacturers continued to fall for the second month in March due to declines in sales of almost all industries, especially in transportation equipment and primary metals. The latest reading came in at $50.0 billion in March, dropping 0.9% from the preceding month. The forecast for manufacturing sales for March was for a 0.7% fall.
Late yesterday, Statistics New Zealand published total producer price outputs and inputs for the first quarter in 2016. The data came in with a drop of 0.2% in PPI output for the quarter ending in March 2016, compared with a 0.8% plunge in the previous period. PPI output also saw a slight decline in the last quarter, losing 1.0% from a 1.2% decrease previously. However, economists had expected positive readings for these indexes, instead of the negative readings that were actually reported.
In Japan, the economy grew better than expected in the first quarter of 2016 thanks to strong consumer and government spending. Reported by the Cabinet Office, the annual rate of gross domestic product (GDP) growth for the last quarter was at 1.7%. After the statement, the Nikkei share average surged up to 16,796.00, up 1.5% from the last close.
In the Asian trading session on Wednesday, oil prices remained firm, as supply cuts continued to support the market. Brent crude oil is currently trading at $49.66/barrel, the highest level in over 6 months. Meanwhile, the precious metal – gold – tumbled today, paring recent gains. Gold price slid 0.3% from the last settlement to $1274.75/oz.

Technicals

USDJPY

Fig. USDJPY H4 Technical Chart
After surging strongly from the support level at 106.406, USDJPY moved sideways between the range of 108.226 and 109.662 with the support of the green parabolics sar below. RSI is above level 50 and heading upwards, indicating that the buying trend is strong. The pair is expected to retest the resistance area at 109.662 soon.
Trade suggestion
Buy Digital Call Option at 109.159 valid until May 20, 2016
Buy Digital Put Option at 109.662valid until May 20, 2016

EURGBP

Fig. EURGBP H4 Technical Chart
EURGBP has fallen continuously from the zone of Fibonacci 23.6% to the area of Fibonacci 61.8%, where it has been moving sideways. RSI is hovering around level 35 and pointing downwards, suggesting that the pair is about to enter oversold territory. The price is expected to continue the current move for the rest of the day, then drop down and test the support level at 0.78000.
Trade suggestion
Buy Digital Call Option at 0.78000 valid until May 20, 2016
Buy Digital Put Option at 0.78178 valid until May 20, 2016

CADCHF

Fig. CADCHF H4 Technical Chart
After witnessing a strong drop from as high as 0.77343, CADCHF has made some recovery and is currently hovering around the area of Fibonacci 50.0%. The pair seems to be getting close to the overbought territory as seen in the RSI staying at level 58 and heading up. The price is anticipated to continue its uptrend, hitting the Fibonacci 61.8% zone before reversing.
Trade suggestion
Buy Digital Call Option at 0.75766 valid until May 20, 2016
Buy Digital Put Option at 0.76138 valid until May 20, 2016

GOLD

Fig. GOLD H4 Technical Chart
Gold rocketed from its recent low around 1227.31 to as high as 1303.70, the highest level in a year. After that, the commodity has retreated and moved between the range of 1256.49 and 1285.67. RSI is staying at level 47 and seems to be heading down, indicating the bear move but its not completely confirmed yet. The price is expected to hit the area of Fibonacci 50.0% (around 1265.51) before pulling back.
Trade suggestion
Buy Digital Call Option at 1265.51 valid until May 20, 2016
Buy Digital Put Option at 1275.29 valid until May 20, 2016

BRENT

Fig. BRENT H4 Technical Chart
Brent has been in a bullish market as seen in the green parabolics sar moving below the price chart since May 11. The commodity is at the highest level since the beginning of the year at as high as 49.64. RSI is about to hit level 70, indicating strong buying power. The price is likely to continue the current uptrend. Buying positions are encouraged.
Trade suggestion
Buy Digital Call Option at 49.64 valid until May 20, 2016
Buy Digital Put Option at 50.03 valid until May 20, 2016

FTSE
Fig. FTSE H4 Technical Chart
The red arrow along with the parabolics sar had appeared above the price some time ago, suggesting that the FTSE is in a downtrend. RSI is hovering around level 48 and heading down, indicating a bearish market formation. The index is anticipated to continue its current down-move, retesting the support level at 6055.11, created on April 5, 2016.
Trade suggestion
Buy Digital Call Option at 6055.11 valid until May 20, 2016
Buy Digital Put Option at 6135.45 valid until May 20, 2016

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