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Home » Technical Analysis » Daily » Daily Report on October 06, 2016 by Option Banque

Daily Report on October 06, 2016 by Option Banque

Posted by Option_Banque in Daily - October 6th, 2016 10:22 am GMT

Daily Report on October 06, 2016

Global stocks firmed on Thursday, buoyed by the rally in oil prices and stronger U.S economic data. MSCI’s broadest index of Asia-Pacific shares outside Japan picked up 0.4 percent while Japan’s Nikkei225 gained 0.5 percent. European markets also opened higher. Germany’s DAX opened 0.4% higher at 10,624.77, and France’s CAC 40 started the session 0.3% higher at 4,505.17. U.K’s FTSE 100 and Stoxx Eurpe 600 added 0.1% and 0.2%, respectively.

Oil retreated in the early European session after extending its uptrend to the sixth consecutive day on Wednesday. Crude prices inched higher following U.S. government data that showed crude stockpiles fell unexpectedly for a fifth straight week.

The U.S. Energy Information Administration continued to surprise the market by reporting domestic crude supplies fell by 3 million barrels in the week ended Sept. 30th. Markets had expected an increase of two million barrels after four weeks of declines in a row.

Also on Wednesday, the ADP reported private-sector employment in the U.S only added 154,000 jobs last month, which is lower than 175,000 jobs added in August and marked the smallest increase since April.

In a separate report, the Institute for Supply Management said its services index shot up to the highest reading in 11 months at 57.1 in September from 51.4 in August. The gauge for the service sector published earlier by research group Markit also pointed to an improvement.

Finally, the Commerce Department rounded up an eventful day for the U.S with data on the country’s new orders for factory goods that indicated a slight increase in August. The manufacturing sector is showing signs of regaining some steam as orders for manufactured goods rose 0.2 percent after a downward revision to the july data. The july number was revised to 1.4 percent increase. The August reading was the second straight monthly increase following two months of weakness in May and June.



USDCAD had to give up its strength after failing to sustain the bullish momentum to break out of the resistance at 1.32000. The pair has generally been supported by the two MAs placed below the price action which has hardly let the pair fall too far below these two support levels. However, sellers seem strong as the %K line is moving a far way ahead of the %D line. USDCAD may extend the downtrend to re-attempt a test of the support at 1.31400.

Trade suggestion

Buy Digital Put Option from 1.31750 to 1.31400 valid until 20:00 GMT October 06, 2016


AUDUSD is on the path to complete the head and shoulders pattern after the pair breached the support at the 23.6% retracement level. Both MAs are still placed over the price action though the short term MA has crossed the long term MA from above. This is likely to create further downward pressure on the pair. With the market continuing to remain in a bearish setup, the pair is expected to fall further.

Trade suggestion

Buy Digital Put Option from 0.75880 to 0.75350 valid until 20:00 GMT October 06, 2016


EURCHF reversed higher from the 50.0% retracement level after collapsing to this level yesterday. The pair has received support from the short-term MA20 at 1.09151 and has bounced back from this zone and has also crossed over the long-term MA50 at 1.09291 from below. The Stochastics are indicating that the %K line has penetrated the %D line from below and is about to escape from the oversold zone, indicating a bounceback. The RSI index soaring above 50 is confirming the up move.

Trade suggestion

Buy Digital Call Option from 1.29350 to 1.09750 valid until 20:00 GMT October 06, 2016


Brent is experiencing some corrective moves after testing the 52.00 level yesterday. The commodity is expected to soon resume its uptrend as the %K line is much likely to reverse higher from near the oversold zone and cross over the %D line from below. The two MAs are placed below the price action and may boost the market to hit the highest level in one month at 52.82.

Trade suggestion

Buy Digital Call Option from 51.70 to 52.80 valid until 20:00 GMT October 06, 2016

Natural Gas

Natural Gas prices has been trading in an extremely thin range around 3.025. The price has entered a phase of consolidation following a sharp up move yesterday from the support at 2.935. The market is on the verge of beginning a continual uptrend as the moving averages are giving out signals supporting the upside. The short-term MA20 has converged with the long-term MA50 from south to north, and both are placed below the price action.

Trade suggestion

Buy Digital Call Option from 3.035 to 3.075 valid until 20:00 GMT October 06, 2016


FTSE has been trading sideways to lower since the index reversed lower from the all-time record highs at 7128.75. While the RSI has dropped into the bearish territory, FTSE is finding support from the dynamic support that is the long-term MA50. In the event that the price action crosses over the MA50 from above, the support at 6954.79 may be the target.

Trade suggestion

Buy Digital Put Option from 7011.00 to 6955.00 valid until 20:00 GMT October 06, 2016

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