Capital Trust
Capital Trust

Oct 22, 2016

05:28 PM EDT

  • New York close
  • London close
  • Tokyo close
  • Sydney close
Market Analysis

Home » Technical Analysis » Daily » Daily Report on September 19, 2016 by Option Banque

Daily Report on September 19, 2016 by Option Banque

Posted by Option_Banque in Daily - September 19th, 2016 9:42 am GMT

Asian stocks advanced on Monday following their biggest weekly drop in three months, as a rebound in crude prices bolstered risk appetite ahead of widely watched central bank policy meetings to be held later this week.

Oil prices climbed almost 2 percent on Monday from one-month lows, amid clashes in Libya, which disrupted supplies. In other supporting developments, Venezuela’s President Nicolas Maduro stated that OPEC and non-OPEC producers were close to reaching an output stabilization deal, and the deal could be announced this month to end a persistent supply glut which has resulted in a collapse in crude prices over the past two years.

China’s central bank was reported to have intervened in the currency markets. The cost to borrow the yuan overnight in Hong Kong surged the most since January, soaring by 15.7 percentage points to 23.7 percent. The People’s Bank of China was suspected to be squeezing liquidity to boost the exchange rate and discourage short positions on the local currency before the Federal Reserve’s review of monetary policy, later this week.

The British Pound continued to plummet at the start of the new week amidst rising rumors around the status of the U.K’s membership in the single market after Britain leaves the EU. While UK Prime Minister Theresa May is expected to trigger the formal process of leaving the European Union as soon as January or February next year, the country’s politicians are split on whether the UK should try to retain a close link with the EU or break away entirely from the single market.

Japan’s markets are closed Monday for a holiday. China, Taiwan and South Korea have returned after a three-day break.



GBPAUD has been nose-diving from two-and-a-half-month highs at around 1.78007 and is heading towards a retest of the last low at 1.72600. As a result of the sharp decline, the MA20 has converged with the MA50 from above, and both MA’s are placed above the price action. More downward pressure is expected to be exerted on the pair. However, a market that has already entered the oversold zone may soon witness a bounce-back.

Trade suggestion

Buy Stop at 1.72600, Take profit at 1.74100, Stop loss at 1.72020

Buy Digital Call Option from to valid until 20:00 GMT September 19, 2016


EURCHF has been trading in an ascending trading range with higher lows being created since the start of August. Meanwhile, the pair has continuously failed to knock out the 61.8% level. The ADX is currently under 20, suggesting that no clear trend is being formed in the market. However, with the stochastic lines pointing upwards, combined with the fact that the market has just successfully bounced back after testing the support trendline, EURCHF is forecast to re-attempt a test of the 61.8% resistance.

Trade suggestion

Buy Stop at 1.09450, Take profit at 1.09770, Stop loss at 1.09190

Buy Digital Call Option from to valid until 20:00 GMT September 19, 2016


AUDUSD has successfully broken through the resistance at the 38.2% retracement level at 0.75255 and at the same time is on the brink of falling into the oversold area. The pair was trading sideways in Asian trading hours following a strong rise. As the 38.2% level is expected to turn into a new support zone, along with two MAs placed below the price action, the pair is anticipated to continue its climb.

Trade suggestion

Buy Stop at 0.75450, Take profit at 0.75660, Stop loss at 0.75200

Buy Digital Call Option from to valid until 20:00 GMT September 19, 2016


Silver has entered a period of consolidation after soaring decisively from the lows at around 18.765 to near the upper boundary of the price range at 19.200. From the stochastic chart, the %K line has crossed over the %D line from above in the overbought territory. Some corrective moves may be witnessed before the metal attempts to resume its rally.

Trade suggestion

Buy Stop at 19.130, Take profit at 19.365, Stop loss at 19.000

Buy Digital Call Option from to valid until 20:00 GMT September 19, 2016


Copper retreated from nearly one-month highs at 2.1668 and has broken below the MA20 at 2.138 from above, signaling a reversal into downtrend. A Near-term target could be around the 50% Fibonacci retracement at 2.1320. On the stochastic charts, the %K line and %D line have dipped to below 50 and are heading towards the oversold zone.

Trade suggestion

Sell Stop at 2.1425, Take profit at 2.1320, Stop loss at 2.1700

Buy Digital Call Option from to valid until 20:00 GMT September 19, 2016


Cautious sentiment ahead of the central bank meetings can be witnessed clearly on the SP500 index chart with lower highs and higher lows. The market does not have a clearly defined direction currently. The futures index opened the Monday session with a wide gap up and broke out of the recent trading range. Support for the up-move are coming from the two MAs placed below the price action and a rising RSI.

Trade suggestion

Buy Digital Call Option from 2148.00 to 2162.90 valid until 20:00 GMT September 19, 2016

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

No comments yet.

You must be logged in to post a comment.

Forex, Commodities, Indices

Daily Updates

Daily Updates

Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.