Daily Report on September 26, 2016
Crude prices nudged up on Monday ahead of the informal meeting between OPEC members led by Saudi Arabia and non-OPEC producers such as Russia on the sidelines of the International Energy Forum in Algeria from Sept. 26-28. Algeria’s energy minister Noureddine Bouterfa said on Sunday that all options were possible for an oil output cut or freeze, and “”We will not come out of the meeting empty-handed.”
The dollar extended losses against the yen and euro in early Asian trading hours on Monday, as the impending first debate between U.S. presidential candidates is due later today. The market keenly awaits the first of three face-to-face contests between Democrat Hillary Clinton and Republican Donald Trump, which could determine the currency’s near-term direction.
New Zealand’s Statistics Bureau reported Monday that the national trade balance widened to a deficit of NZ$1.3 billion on a yearly basis in August, compared to a NZ$730 million shortfall expected. Particularly, exports fell by $323 million to $3.4 billion in August, with dairy and meat products leading the downfall. Meanwhile, goods imports fell $148 billion to $4.7 billion, with capital goods declining $195 million.
In the UK, the latest survey of 115 financial services firms by business lobby CBI and consultancy PwC found that optimism over the outlook for Britain’s financial services sector is at its lowest point since the financial crisis. Optimism fell during the three months to September, the third quarter in a row that it has dropped, marking the longest decline since the financial crisis in 2009.
GBPUSD is once again heading for the support level at 1.29500 which has been holding the currency pair from breaking lower for almost one and a half month. The two MAs placed above the price action are setting a bearish tone for GBP/USD and indicating a possible break through the 1.29500 level. In the event of a continuation lower, the first notable level of support is seen at 1.29000.
Buy Digital Put Option from 1.29500 to 1.29000 valid until 20:00 GMT September 26, 2016
USDJPY is swinging back and forth within the range between 101.200 and 100.600. The convergence of the ADX line with +DI and –DI lines indicates that no clear impending trend is being formed in the market. With the RSI staying below the average level, sellers are outweighing buyers a little, but the current level of force may not be enough for a breakout of the support at 100.600.
Buy Digital Call Option from 100.600 to 101.000 valid until 20:00 GMT September 26, 2016
AUDUSD has been wobbling around the 23.6% Fibonacci level at 0.76147 since last Friday but is expected to pull back from this level as prices seem to be up against solid support which is the short-term MA20. Although the RSI is heading downwards, the index has not fallen below 50, suggesting a strong bull that is still reigning in the market.
Buy Digital Call Option from 0.76250 to 0.76730 valid until 20:00 GMT September 26, 2016
Silver is marching towards the 23.6% retracement level. The market is expected to break below this level easily, considering the last four breakouts. A reversal into a downtrend has been confirmed after the price action crossed over the 20-period MA near 19.623 from above. Furthermore, the RSI index which has inched below 50 has also confirmed further declines.
Buy Digital Put Option from 19.500 to 19.265 valid until 20:00 GMT September 26, 2016
WTI crude prices have resumed the downtrend after a period of corrective buying. WTI fell nearly 5% in the last session from two-week highs around 46.50 to as low as 44.20, and broke below both MA20 and MA50, consolidating the downward momentum. Sellers are anticipated to send the market lower. As can be seen from the RSI chart, the index remains under the 50 level
Buy Digital Put Option from 44.50 to 43.85 valid until 20:00 GMT September 26, 2016
FTSE has been on a decline from over one-month highs at 6937.90. Even though the two moving averages are placed below the price action, the index is likely to keep falling as downward pressure is being exerted from parabolic sar band placed above the price action. The %K line is taking the lead ahead of the %D line in the race towards the oversold zone.
Buy Digital Put Option from 6880.00 to 6815.00 valid until 20:00 GMT September 26, 2016