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Market Analysis

Home » Latest News » Daily report on May 31, 2016

Daily report on May 31, 2016

Posted by Option_Banque in Latest News - May 31st, 2016 8:20 am GMT

Crude prices gained slightly on early Tuesday due to the increasing demand for oil ahead of the summer driving season, although fuel markets were weighed down by rising output in the Middle East. U.S. West Texas Intermediate (WTI) crude oil futures climbed 17 cents to as high as $49.50 per barrel, while Brent crude oil inched up 0.07% to $50.29 in comparison with their last settlement.
The US dollar stayed firm today, hovering around the highest level in two months against the basket of major currencies. Market expectations of a US rate hike in June are growing day by day, especially after Federal Reserve Chair Janet Yellen said that a rate increase would be appropriate if the US economy and labor market continued to show positive signals.
The dollar index, measuring the strength of the currency against its rivals, jumped to as high as 95.968 on Monday, adding 4.4% from the 15-1/2 month low hit earlier this month at 91.919.
Meanwhile, the sterling has been supported in recent weeks, as a series of polls have reported the “Remain” camp leading over the “Leave” side. The pound was lifted to the highest level in more than 3 months against the US dollar at around $1.47298 last week.
In Japan, data reported by the Ministry of Economy Trade and Industry on Tuesday, indicated that factory output gained 0.3% in April compared with the previous month, beating market expectations for a 1.5% drop, as the earthquakes in the South seemed to have had minimal impact on production. The better-than-expected data has supported the Yen, pushing the US dollar off its one-month peak against the Japanese currency.

Technicals

GBPUSD

Fig. GBPUSD H4 Technical Chart
Currently, sterling is in an up-move against the greenback after the pair GBPUSD hit the support of 1.45861 yesterday. However, the stochastics chart shows that the pair has approached overbought territory and a pullback is likely to happen as the %K (blue line) reversed and may soon cross over the %D line (red line). For the rest of the day, the price is anticipated to surge higher, retesting the resistance of 1.47398. After that, a reversal may occur.
Trade suggestion
Buy One Touch Call Option at 1.46714 valid until May 31, 2016

Buy One Touch Put Option at 1.46544 valid until May 31, 2016

EURJPY

Fig. EURJPY H4 Technical Chart
Ahead of the ECB Press Conference on June 02, EURJPY has been tiptoeing lately, after rising from the three-week low of 122.206 on Friday. However, the bull seems dominant against the bear as indicated by a higher-than-average RSI (14). The pair is expected to stay gingerly for a bit and then resume its uptrend. A long position is encouraged by the green trend signal arrow under the price chart.
Trade suggestion
Buy One Touch Call Option at 123.896 valid until May 31, 2016

Buy One Touch Put Option at 123.688 valid until May 31, 2016

AUDNZD

Fig. AUDNZD H4 Technical Chart
Over the last week, AUDNZD has created a double bottom around the area of 1.06147 and currently is under slight upward pressure. The pair is expected to jump higher, thus beginning an uptrend after a long time of moving sideways. ADX (14) points up and stands at 21.10, implying that the current move is quite strong. The signal trend indicator has formed a green arrow since May 26, suggesting a long position.
Trade suggestion
Buy One Touch Call Option at 1.07711 valid until May 31, 2016

Buy One Touch Put Option at 1.07625 valid until May 31, 2016

SILVER

Fig. SILVER H4 Technical Chart
RSI (14) has just escaped oversold territory after remaining in this zone for a while, indicating that an up-move may occur. The commodity is inching up from the support of 15.882 formed yesterday. The price is expected to consolidate for a period of time, breaking the level 23.6% of Fibonacci retracement and then pulling back. The signal trend indicator still suggests a short position.
Trade suggestion
Buy One Touch Call Option at 16.150 valid until May 31, 2016

Buy One Touch Put Option at 15.873 valid until May 31, 2016

WTI

Fig. WTI H4 Technical Chart
WTI is on track for a gradual move-up after advancing strongly in the first half of May. The stochastics chart shows that the %K line (blue line) has reached the threshold of overbought area, hinting that a reversal back down is likely to occur in near future. However, the green arrow hanging under the price chart still signals a long position on this commodity.
Trade suggestion
Buy One Touch Call Option at 50.30 valid until May 31, 2016

Buy One Touch Put Option at 49.56 valid until May 31, 2016

DAX

Fig. DAX H4 Technical Chart
The bullish power of the price movement is currently under a shadow as indicated by a higher-than-70 reading of RSI (14). DAX has been in the overbought zone for a period of time, after a strong up-move from the support of 9768.37 since last Tuesday. In the short-term, the index may continue its uptick, testing the resistance around the area of 10415.77. After that, a reversal into downtrend is likely to come through.
Trade suggestion
Buy One Touch Call Option at 10373.8 valid until May 31, 2016

Buy One Touch Put Option at 10322.1 valid until May 31, 2016

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