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Home » Technical Analysis » Daily » Daily Report on October 03, 2016 by Option Banque

Daily Report on October 03, 2016 by Option Banque

Posted by Option_Banque in Daily - October 3rd, 2016 10:54 am GMT

Daily Report on October 03, 2016

Asian stocks climbed on Monday as risk sentiment was boosted by easing of concerns about Deutsche Bank AG’s finances after the lender had been reported to negotiate a much lower settlement with the U.S Department of Justice than the initial claim. MSCI’s broadest index of Asia-Pacific shares outside Japan inched 0.8% percent higher following its best quarterly performance since early 2012.

Brexit angst continued to weigh on the British Pound. The Sterling created a wide gap down on the opening after British Prime Minister Theresa May said on Sunday that she would trigger the process of negotiating the UK’s exit from the EU by the end of March. The pair GBPUSD hit the lowest since August 16 at $1.29162 in early Asian trading in thin liquidity.

The Bank of Japan released its tankan survey of business sentiment, early on Monday. The survey indicated that large Japanese manufacturer sentiment remained flat in the past three months while non-manufacturing business sentiment slipped to its lowest in nearly two years. The gauge for confidence among big manufacturers stood at plus 6 in September, unchanged from three months ago. The index missed a median market forecast of plus 7.

Sentiment among large companies in the service sector hit the lowest level since December 2014 at plus 18, falling for three straight quarters as a result of typhoons and a slowdown in spending by foreign tourists stemming from a strong yen.

However, Japanese firms’ appetite for capital spending remained resilient. Big firms plan to raise capital spending by 6.3 percent for this fiscal year, from year-before levels, basing their business plans on the assumption that the dollar would average 107.92 yen for the fiscal year through March 2017, down from 111.41 yen forecast three months ago.

Markets in China, Australia, Germany, Malaysia and South Korea are shut due to local holidays on Monday.



USDJPY has been moving in a thin range since it breached the resistance at 101.200 as the pair is facing strong resistance from the descending trendline connecting lower highs since the start of September. The long upper shadow of recent candles indicates attempts by buyers to push the price higher but sellers have jumped in every time and snapped any rally. With the %K line having crossed over the %D line from above, the pair may fall back below the 101.200 level.

Trade suggestion

Buy Digital Put Option from 101.150 to 100.850 valid until 20:00 GMT October 03, 2016


NZDUSD has been moving sideways to lower since a steep slide on September 22. The pair is moving in the range between the support at 0.72200 and the resistance at 0.72900. As can be seen on the chart, lower lows and lower highs are being formed, indicating strengthening bears. Stochastic lines pointing down are consolidating the downtrend. The price action has broken below both the MA’s which are now placed above the price action and adding further downside momentum.

Trade suggestion

Buy Digital Put Option from 0.72500 to 0.72200 valid until 20:00 GMT October 03, 2016


CADJPY has been on a rise since it rebounded from over four-year lows at 75.384. The two moving averages which acted as resistance through most of September have turned into dynamic supports that supported prices to reverse higher last Friday. The short-term MA20 has converged with the long-term MA50 from below, suggesting further up moves.

Trade suggestion

Buy Digital Call Option from 77.350 to 77.825 valid until 20:00 GMT October 03, 2016


Gold has been trading sideways under the 23.6% retracement level at 1319.40 since it broke below this level on Friday. The yellow metal failed to surge above this handle in early Asian trading hours and had to retreat and head down towards the multi-month lows at 1302.00 recorded at the start of September. With the two MAs placed above the price action and RSI remaining below 50, Gold is expected to fall deeper.

Trade suggestion

Buy Digital Put Option from 1314.00 to 1308.90 valid until 20:00 GMT October 03, 2016


U.S crude prices seemed to resume the uptrend after a brief correction from one-month highs at 48.30. The wide gap between the short-term and long-term moving averages is widening, suggesting a strong uptrend, which has pushed the market to near the overbought zone. In the event of a continual up-move, the commodity is expected to pull back after hitting the resistance at 48.30.

Trade suggestion

Buy Digital Put Option from 48.30 to 47.75 valid until 20:00 GMT October 03, 2016


Euro Stoxx 50 index opened the session with a small gap down after a strong rally on Friday. Since early September, lower lows have been created, suggesting a weakening of the bulls in the market. While the stochastic chart has neared the overbought zone, the RSI is still lingering around average level. The 38.2% level is within sights but this is not a firm support level considering recent price cycles. Traders may need to wait for more signals to enter a trade.

Trade suggestion

Buy Digital Call Option from 3016.50 to 3050.00 valid until 20:00 GMT October 03, 2016

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