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Oct 01, 2016

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Home » Technical Analysis » Daily Report on September 15, 2016 by Option Banque

Daily Report on September 15, 2016 by Option Banque

Posted by Option_Banque in Technical Analysis - September 15th, 2016 9:03 am GMT

Global equities extended their rout in Asian trading hours on Thursday as a tumble in crude oil sapped investor appetite for risky assets. The MSCI Asia Pacific Index declined 0.5%, prolonging the retreat to a sixth consecutive day, and marking the longest losing streak in four months. Japan’s Topix index also posted losses, sliding for a seventh day.

Data by the Australian Bureau of Statistics on Thursday reported a rise in the number of people leaving the labor force, which helped reduce the unemployment rate to the lowest level since September 2013. Australia’s jobless rate fell to the lowest in almost three years in August, coming in at 5.6% from 5.7% in July. Fewer people sought work, dampening the participation rate lower to 64.7% from 64.9%. Specifically, in contrast to economists’ forecast of a 15,000 gain in the number of people employed, employment actually dropped significantly, with the number of people employed falling by 3,900 from July.

Elsewhere, Statistics New Zealand announced that the country’s second-quarter gross domestic product increased by only 0.9 percent from the previous three months, missing the 1.1 percent expansion forecast by economists. The New Zealand Dollar was down 0.2 percent after the report.

Today, investor attention will be on the two central bank meetings at the Bank of England and the Swiss National Bank. The BOE’s assessment of how the economy has performed since its last gathering on Aug. 4 will be in the spotlight. The central bank is forecast to maintain an unchanged policy, after easing rates last month, after data released recently , indicated that projections for a sharp slowdown in Britain’s economy after June’s Brexit vote, could be overestimating the potential damage.


Technicals

CADJPY

CADJPY is falling further, having already lost more than 300 pips (3.6%) from the highs around 80.300. The downtrend does show signs of weakening with shorter bodies in the recent candles. However, the two MAs placed above the price action, continue to fuel the bearish momentum in the pair. The RSI is pointing downwards and heading down from the neutral threshold. CADJPY is expected to slide further.

Trade suggestion

Buy Digital Put Option from 77.400 to 77.000 valid until 20:00 GMT September 15, 2016

NZDUSD

The slide in NZDUSD resumed after a period of correction yesterday. NZDUSD has fallen out of the upward slopping range and is struggling with the support at 0.72640. The lower boundary of the trading channel which has just been breached has now turned into a resistance which suppressed the pair’s attempt to break back into the channel. The pair may fall deeper to the zone of support at 0.72070 should the current support levels be broken as the bear is overshadowing the market and casting downward pressure on the pair.

Trade suggestion

Buy Digital Put Option from 0.72600 to 0.72070 valid until 20:00 GMT September 15, 2016

EURCAD

EURCAD has been registering a strong rally which helped the pair break out of the shrinking trading range formed during the April-August period. After a sharp increase, bulls seem to be getting weaker. As can be seen in the stochastic chart, the +DI line is heading downwards. Still, the ADX index is soaring higher, combined with a rising RSI, suggesting further advances.

Trade suggestion

Buy Digital Call Option from 1.48600 to 1.49260 valid until 20:00 GMT September 15, 2016

SILVER

Silver has been restrained below the MA20 for a while, and is forming lower highs after failed attempts to break through this flexible resistance. The %K line and %D line on the stochastic chart are pointing down towards the oversold area, indicating a market in favor of the bears. Nonetheless, as the support at 18.765 is within sight, the current decline may be limited.

Trade suggestion

Buy Digital Put Option from 18.875 to 18.765 valid until 20:00 GMT September 15, 2016

BRENT

Brent crude pulled back to above 46.00 from nearly two-week lows at 45.69. The rebound came in as a result of an oversold market. Recent up candles with short bodies suggest that the slump is expected to resume soon as sellers are overwhelming. The two MA’s are placed above the price action and the price has not been able to cross over the MA’s despite some recent attempts to do so. Key support at 45.30 is anticipated to be retested.

Trade suggestion

Buy Digital Call Option from 46.10 to 45.30 valid until 20:00 GMT September 15, 2016

FTSE

The FTSE has hit the low at 6660.00 three times in the last three days but failed to break this major technical level on every attempt. Lower highs are being formed on the stochastic chart, indicating an underlying bear that is gaining strength. Any uptrend at this moment seems to be limited as the downward pressure is coming from both MAs placed above the price action as well as the upper boundary of the downward sloping trading range, that the prices are currently trading within.

Trade suggestion

Buy Digital Put Option from 6660.00 to 6610.70 valid until 20:00 GMT September 15, 2016

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